Nucor CEO Predicts Steel Demand to Grow by 2% in 2018

SEATTLE (Scrap Monster): The Steel Survival Strategies Conference held June 25-27 in New York City has sent out an optimistic message with regards to the future of global steel industry. The event, hosted by American Metal Market (AMM) in association with World Steel Dynamics (WSD) observed that the current steel market conditions point to an optimistic future in the near and medium term.

Speaking at the conference, John Ferriola, Chairman and CEO, Nucor Group predicted that steel demand is likely to increase by as much as 2% in 2018. 21, out of the company’s 24 end markets are either stable or improving, he noted. According to him, construction markets look the strongest, followed by machinery and equipment sector.

The company has been making big investments over the past several years to tap the benefits of the emerging steel industry worldwide. The diversification of product lines has helped the company to survive in difficult market conditions. It has carried out notable upgrades to its facilities to produce more value-added products. Going forward, the company plans to acquire complementary assets and expand into underserved markets. The company will invest in two micromills-one in Frostproof, Florida and the other in Sedalia, Missouri, which in turn will boost the production of merchant bar products.

ALSO READ: Republic Steel Accomplishes $12 Million Investment at U.S. Facilities

The participants in the conference welcomed the Section 232 tariffs recently imposed by the U.S administration, stating that it will contribute immensely to protection of domestic steel industry. The strict enforcement actions are likely to provide big relief from imports of illegally subsidized steel products. They also demanded reconsideration of certain rules and norms of the North American Free Trade Agreement (NAFTA) towards boosting steel markets in the U.S., Mexico and Canada.