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Steel: Price and Policy Issues
Stephen Cooney
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Steel: Price and Policy Issues - Cooney, Stephen
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Synopsis "Steel: Price and Policy Issues"
Steel prices remain at historically elevated levels. The rapid growth of steel production and demand in China is widely considered as a major cause of the increases in both steel prices and the prices of steelmaking inputs. Steel companies have achieved much greater pricing power, in part through an ongoing consolidation of the industry. Most of the integrated side of the industry, nearly half of U.S. production, is controlled by just two companies: U.S. Steel, the traditional industry leader, and Mittal Steel, itself the result of multiple international mergers. Moreover, Mittal's 2006 acquisition of the global number-two producer, Arcelor, may further shake up the industry. Nucor and Gerdau have been active major consolidators of U.S. minimill production.
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