By Paul Ploumis (ScrapMonster Author)

March 21, 2016 07:48:09 AM

SPOKANE (Scrap Monster):The speakers at the 2016 Platts Steel Markets North America Conference believe that demand for North American-made steel is likely to improve during 2016 and 2017. The rising demand for finished steel could boost the steel mill output by the US. The uptick in domestic steel demand is likely to offer good support to ferrous scrap prices. The Conference was held in Ritz-Carlton, Chicago on March 14-15th.

According to participants, the US automotive sector has reported robust activity recently. There has been a sharp improvement in automobile sales in the country. The anticipated recovery in US economy could lift the sales figures to new heights in the coming years. The participants noted that steel industry has been successful in offering alternative lightweight solutions to plastic and aluminum. The advanced high-strength steel (AHSS) alloys have proved to be a strong competitor for aluminum and plastic in the manufacture of lightweight automotive components. The category of steel alloys also offers safety and sustainability, which makes it a competitive material in the auto sector.

The Conference noted that 2015 had been a disappointing year for the country’s construction industry. For instance, non-residential construction declined by 2% during the year. As per forecasts, non-residential and multi-story residential construction is likely to increase in 2016 and flatten out in 2017 and 2018.

Philip Bell of Steel Manufacturers Association (SMA) noted that apparent steel usage by the NAFTA region dropped sharply to 140.9 million tons in 2015, when compared with 146.4 million tons in 2014. The steel use is predicted to increase to 143.1 million tons during the current year on account of trade sanctions imposed by the country against dumping of cheaper goods from other countries, especially China. Incidentally, market share of imported steel has risen from 12.5% in 2010 to 20% in 2015, Bell stated.