Analyst: Expect Tighter Competition in U.S. Sheet Market
10/04/2016 - Supply-side competition in the U.S. sheet market is likely to stiffen in the year ahead as new players enter the market and others become more aggressive, according to one analysts.
Speaking during the CRU North American Steel 2016 conference in Chicago, Philip Gibbs, an equity research analyst with KeyBanc Capital Markets, said he expects competition to grow with the entry of Big River Steel and as ArcelorMittal moves to capture more market share.
In addition, he said it remains to be seen how certain Canadian mills that are up for sale now, but appear to be close to finding new finding new life, affect the market.
But with or without them, all of the producers will be looking for a slice of a pie that isn’t expected to be significantly larger -- CRU principal steel consultant Josh Spoores said the firm is forecasting about 500,000 tons of new U.S. demand in 2017.
In addition, he said it remains to be seen how certain Canadian mills that are up for sale now, but appear to be close to finding new finding new life, affect the market.
But with or without them, all of the producers will be looking for a slice of a pie that isn’t expected to be significantly larger -- CRU principal steel consultant Josh Spoores said the firm is forecasting about 500,000 tons of new U.S. demand in 2017.
