Steel production fell again sharply last week. It may only be an end of the year drop but could be a continuation of the slowdown in production.
Steel production continues to soften showing a slightly slowing market.
A bright spot, according to Alan Beaulieu (one-half of the Beaulieu Brothers) of ITR Economics, is encouraging numbers in mining equipment production domestically:
Source: ITR Economics
According to Beaulieu, although the US economy should see a downturn in 2014, “[The] increased willingness for businesses to invest in new equipment has trickled down to mining machinery new orders, which are 5.6% ahead of last year. Mining machinery inventories are currently up 9.6% from 2012, but the rate of change is slowing, which is a good sign for equipment production.”
The MEPS – GLOBAL STEEL PRICE is forecast to expand by approximately six percent over the next five months. The gains are likely to be uneven across the world. The most significant increases are likely to develop in the European Union, after a difficult period for the mills for much of 2013. Slow but steady price advances are predicted in the main steel producing nations in Asia. In North America, the upturn, which started in the second half of this year, is expected to extend into the early months of 2014.