We are republishing our best-read posts of 2016 during the holidays as we look forward to 2016. This is the most-recent of our Best-of-MetalMiner posts, having only been published a few weeks ago on November 15. It continues the trend of highlighting the predictions of our lead forecasting analyst, Raul de Frutos. — Jeff Yoders, editor
Since their peak in the summer, domestic prices of flat steel products have fallen in the range of 20-30%. However, we have some reasons to believe U.S. steel prices are set to rebound:
What changes in the steel industry Donald Trump will make are still unknown. What’s clear is that the new president-elect made trade, manufacturing and the steel industry a cornerstone of his agenda.
Stocks of American steel companies soared last week as investors hope that a Trump-led government will boost domestic infrastructure, which could be a boom for steel demand. In addition he has stated he would institute more measures to protect domestic steel producers.
Dow Jones U.S. Steel Index hits a two-year high. Source:MetalMiner analysis of @stockcharts.com data.
A good benchmark for steel prices is the Dow Jones US Steel Index, which tracks major steel producers around the globe. Following the election, the index rose sharply to the highest levels in two years. The stocks of US steel companies are linked to domestic steel prices. This powerful price increase hints to a rebound in steel prices.