Steel Products Prices North America
March 21, 2019
SMU Market Trends: Majority Skeptical of “Steelmageddon” Scenario
Written by Tim Triplett
Bank of America Merrill Lynch predicts that billions in capital investments by domestic steelmakers over the next few years, adding more than 20 million tons of new capacity to the market, will cause a glut of supply that proves disastrous for steel prices—a phenomenon they have dubbed “Steelmageddon.” Steel Market Update canvassed the market this week and asked executives, mostly from service centers and OEMs, how they feel this coming capacity will impact steel prices. The majority appear surprisingly unconcerned.
One third agree with BAML that steel prices will drop dramatically as the new supply comes online. But 10 percent expect no impact on steel prices from the new capacity. The majority, 57 percent, expect steel prices to rise and fall based on demand more than supply.
