Kidd and Kuel Forecast Flat Year for Steel Industry

Buyers and sellers have mixed emotions and opinions regarding the current steel market. Most companies which Steel Market Update has spoken or traded emails with over the past few weeks are telling us their order books are “OK” and in line with what they saw last year at this time. Most companies believe their demand will remain the same or improve as the year progresses, with growth in the low single digits as a percentage. Last year at this time, SMU was hearing the same projections for 2013.

However, as we look at GDP (Gross Domestic Product) and the steel industry – it is well known that the steel industry needs to see GDP of around 2.4 percent before the industry sees any real growth. Real GDP for 2013 came in around 1.9 percent which explains why the industry did not grow. According to Glenn Kidd, Steel Industry Analysts, in his presentation to the FMA Toll Processing Conference earlier today, the total U.S. steel industry consumed 105.3 million tons both in 2012 and 2013.