SUGAR LAND, TX–(Marketwired – May 26, 2016) – Researched by Industrial Info Resources (Sugar Land, Texas) — U.S. steel manufacturers are reeling from global oversupply and the flood of inexpensive subsidized imports coming into the market from countries such as China. The integrated steel makers, which have higher costs, are at risk. Some have closed facilities, others scaled back production and most have reduced capital expenditures (capex). Recycling mills, which use scrap steel and in general have lower costs, have fared better, but there are still problems, especially for those that serve the energy markets, which have been hit by low oil and gas prices. Demand for drilling pipe and rig steel has fallen significantly.
The Steel Industry is the second largest sector in the Metals & Minerals Industry for project spending globally. “Right now we are tracking more than 4,100 projects totaling $421 billion,” said Joe Govreau, VP Research Metals & Minerals for Industrial Info Resources in a recent Steel Sector Update Mini-Presentation. “This includes everything from large grassroot steel mills and expansion projects to smaller equipment additions and automations, but a lot of these projects are at risk given the current market conditions.”
View the 5-Minute Steel Sector Update Mini-Presentation by clicking here.
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