Steel Price Hikes Signal More Supply Squeeze than Demand Surge
By Editor - Wed Sep 16, 6:15 am
(Bloomberg) — U.S. Steel Corp. kicked off another round of price hikes this week for benchmark steel products, though industry observers don’t see the gain as signaling a post-pandemic rebound in demand.The second-largest U.S. producer raised prices on new orders of flat-rolled products by a minimum of $60 a ton, according to a letter sent to customers and seen by Bloomberg. Supplies remain tight, mostly because steel-plant usage has been running near multi-year lows as Covid-19 pandemic lockdowns sapped demand for areas including construction, automobiles and appliances.“There’s a lot of capacity off the market that’s being restricted that will ultimately come online,” Phil Gibbs, an equity research analyst at KeyBanc Capital Markets, said in a phone interview.
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