US Steel News: Steel Prices and Demand Impacted by Strike Aftermath

SEATTLE (Scrap Monster): The Wall Street Journal reports that the US steel sector suffered greatly due to the UAW strike, with significant declines in demand, sales, and pricing. During the summer, as a UAW strike became increasingly possible, steel purchases by users connected to the car industry began declining quickly. Indeed, S&P estimates that the strike prevented the production of 6,030 automobiles per day, equivalent to roughly 5,982 tons of steel. 

US steel news sources indicate that the American Steel Index dropped 5.92% last month. Meanwhile, spot prices for benchmark coiled sheet steel (a material typically used to build car parts) dropped 40% since April. Currently, the average vehicle’s body, mufflers, exhaust pipes, and other components are still mostly made of steel, which accounts for roughly 54% of the total material content.

Anderson Economic Group’s aforementioned report indicates that the Big Three automakers suffered a loss of $1.12 billion in the first two weeks of the strike alone.  When the strike hit the two-week mark, GM estimated a total loss of roughly $200 million. That said, the steel market had been anticipating the strike for most of 2023. This also drove down steel prices, which were already in recovery from poor demand during the pandemic.

Courtesy: www.agmetalminer.com