New York Times reported that, after a roller coaster 2008 of record highs to devastating lows, US domestic steelmakers are now turning to government for orders that, until the September collapse, had come from manufacturers and builders.
As per report, the ailing United States steel industry is pressing President elect Mr Barack Obama for a public works plan that could be worth up upwards of USD 800 billion over 2 years to boost flagging demand for US made steel. The industry is one of many others in the nation looking for a piece of the stimulus plan pie.
New York Times quoted Ms Nancy Gravatt spokeswoman of American Iron & Steel Institute as saying that "We are sharing with the president-elect's transition team our thoughts in terms of the industry's policy priorities."
Mr Daniel DiMicco CEO of Nucor said that he will use his position as a member of the US Department of Commerce's manufacturing council to push for the use of domestically produced steel. He added that the domestic steel industry wants the new administration to address the worst economic slowdown in our lifetime through a recovery program that has in every provision a buy America clause.
In the second half of 2008, US steel output declined after a notably strong first half. Since September 2008, capacity utilization rates have declined to about 50% at some plants while widespread layoffs have been announced at a number of companies. Before tumbling with the rest of the economy last year, US steel prices had reached all time highs that resulted in some significant corporate revenues.
The Metals Service Center Institute reported another month of declining shipment volumes in the US during November, saying that turmoil unleashed by the housing and financial crisis for depressing North American economic activity. Steel service centers were especially hard hit. US service centers' steel shipments declined 32.7% from the November 2007 shipment total, to about 2.71 million tons. For the first 11 months of 2008, US service centers shipped 44.4 million tons of steel products. The MSCI noted that the last time YoY steel shipments fell so markedly was during the 1980-82 recession.
According to preliminary data from the US Department of Commerce's Census Bureau, imports, which account for about 30% of all steel sales in the US, are also hurting as customers disappear. Total imports of steel products in November fell by 28.1% MoM versus the October import total, and finished steel imports fell by 17.3%. For the first 11 months of 2008, total imports of steel amounted to 29,694,045 tons, a decline of 4.9% versus January to November 2007 period.
