In the next six months, the US steel industry could see steady growth, driven by the positive outlook for global GDP growth rates as well as the possible US imposition of tariffs on steel imports. The World Bank forecasts US GDP growth rates for 2017 and 2018 at 2.2%, and 2.1%, respectively, while global GDP growth rates could be 2.8%, and 3.0% respectively.
Global steel demand is likely to be also buoyed by the return to growth in Europe. Although risks in the developed world are receding, there is some uncertainty emerging from developing countries due to unresolved structural issues, political instability and volatile financial markets. Even though the overall forecast for the global steel industry remains somewhat uncertain and challenging, steel demand is set for further growth.
Mergent expects that US steel companies will see face modest growth in the next six months, especially as the US governments intensifies its efforts to enforce anti-dumping and countervailing duties. With expected rises in construction and automobile, metal producers should continue to see greater efficiency and investment for growth.