Skip to main content

Peak Price in US Steel Industry Is Hard to Continue

Peak Price in US Steel Industry Is Hard to Continue

US President Trump’s steel tariffs have brought the US steel industry to a high-light moment in the past 10 years in 2018. Steel prices have remained at a high level, and corporates profitabilites have set records. However, as the market gradually returned to rationality, US steel prices have declined significantly since the beginning of the year, and steel companies’ earnings in the second quarter were lower than expected. Glory Steel could offer 30x 50 hot rolled steel square bar for crane manufacturers or users. Even with the protection of taxes, high-cost producers are feeling the pressure on the market, and US Steel has announced a cut in production. At the same time, driven by good earnings in 2018, US steel producers have restarted their previous idle capacity and made new investments. Some analysts believe that US steel production capacity will increase significantly in the next two years, and new pressure on market prices. The prospects are not optimistic.   30x 50 hot rolled steel square bar could be used as crane rail.
From the data point of view, 2018 is a record year for the US steel industry. However, in 2019, the situation began to change, mainly reflected in the decline in steel prices. Some analysts believe that the Trump administration announced a 25% tariff on imported steel in March 2018, and US steel producers raised prices. Downstream customers are worried that tariffs will have a big impact on supply, so they increase their purchasing power, which further pushes up prices. With the rise in steel prices and corporate profits, the idle capacity of domestic steel mills has resumed production. After the introduction of steel tariffs, the US steel supply was not affected much, and downstream customers began to process inventory and reduce steel purchases. At the same time, the slowdown in the growth of the automotive, energy and construction industries has also had an impact on demand. The drop in demand coupled with the increase in US steel production has led to a sharp oversupply of steel and a sharp fall in prices since the beginning of the year.
US Steel Corporation announced on June 18 that company’s second-quarter profit is expected to be lower than expected due to falling steel prices and weak demand. It will idle two blast furnaces in the US and a blast furnace in Europe to make its steel production consistent with orders worldwide. The concentration of the US steel industry is high, but the production efficiency is clearly differentiated. Comparing with per capita crude steel production, the US steel company is the lowest. The high production cost of US steel companies is an important reason for companies to be more susceptible to falling market prices.
In general, the suspend production will result in US steel companies starting at least 320,000 tons per month from July, accounting for 22% of their 2018 crude steel monthly average production. The US Steel Company said that it will partially or completely resume production in the later period depending on market conditions. Analysts believe that a year ago, Trump imposed a 25% tariff on steel imports on the grounds of national security, hoping to protect the domestic steel industry and promote US steel prices. However, after the economic situation in the United States improved, it also prompted steel companies to restart their previously idle capacity. Low-cost steel producers such as Steel Power and Nucor Steel also took the opportunity to expand production capacity. Domestic steel supply increased substantially, which may lead to future steel product prices decline.
If you want to  purchase 30x 50 hot rolled steel square bar  for the crane rail, pls try contact us.

Comments

Post a Comment

Popular posts from this blog

What are railway rail fasteners？

What are railway rail fasteners？ Railway rail fasteners Railway rail fasteners are a kind of railway accessories. The parts used to combine rails and sleepers (or other types of under-rail foundations) on the track are also called central joint parts. Its function is to fix the steel rail on the sleeper, maintain the gauge and prevent the longitudinal and lateral movement of the rail relative to the sleeper. The railway rail fastener system is divided into the shrapnel fastener system, gusset fastener system, and elastic strip fastener system. The gusset-type fastener is composed of a gusset plate, a threaded spike, a spring washer, an iron seat, and a buffer pad. The threaded spike is anchored in the reserved hole of the concrete sleeper bearing platform with sulfur cement mortar, and then bolts are used to fasten the buckle. Plate fastened. There are elastic strips I, II, and III types of clip fasteners. Type I elastic strip is composed of ω elastic strip,  screw spike , gauge b...
Post a Comment
Read more

30 LB RAIL FOR SALE

  30 LB RAIL FOR SALE What is a 30 lb rail? A 30 lb rail refers to a rail weighing 30 lb in meters, which is an ASCE 30 model rail produced according to ASTM A1. As a common light track, it is mainly used for laying mining track lines. Therefore, it is widely used in the South American market. The dimensions of the 30 lb rail are as follows: Head width: 42.9mm Track height: 79.4mm Track bottom width: 79.4mm Waist thickness: 8.4mm GloryRail is an important  mining rail  supplier in China. Engaged in rail supply for more than 20 years. Rail products are exported to many countries and regions around the world. Trusted and supported by many mining customers. We maintain long-term cooperative relationships with many important customers in Peru, Colombia, Panama, and Venezuela in South America BUY 30 LB RAIL FROM CHINA As the world’s most important rail tracks production base. There are six major steel mills in China producing rails with an annual output of millions of tons. G...
Post a Comment
Read more
  What are seamless rails? seamless rails Continuous seamless rails, also known as a welded long rail line, is a line that welds ordinary rails without leaving rail seams. meters or longer. The long rails are laid and fixed on the sleepers within the specified temperature range. There are rail slits at the end of the long rail, and the middle part cannot expand or contract with the temperature rise and fall. Therefore, the middle section of the steel rail will generate a large temperature pressure in summer and a large temperature tension in winter. The large pressure and tensile force in the rail can be calculated according to the annual high and low temperature of the place where the rail is laid. The large pressure on the rail should not cause the rail to buckle, and the large tensile force should not cause the rail to break. The seamless rails line greatly reduces the  rail joints , reduces the impact on the rails when the wheels pass through the joints, is conducive to s...
Post a Comment
Read more