Mid-level producers, smaller steel and metals service centres have started to feel cash flow and profit margin pressure after the imposition of tariffs.
- Import tariffs on steel and metal imports hurt certain segments
- Major buyer industries are about to be affected by higher prices
- A slight insolvency increase in 2019 cannot be ruled out
According to the World Steel Association, US steel production increased 4% in 2017 and in the period January-August 2018 respectively. US steel demand is forecast to increase about 3% in 2018 and 2% in 2019, after a 6.4% increase in 2017. Last year US steel and metals businesses benefited from tax cuts on corporations, which allowed companies to expand their infrastructure and increase investments.
Read the full report here: Market Monitor Steel Metals USA 2018
