Steel Industry in the United States Had Begun to Revive in 2017

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Steel industry plays an important role in American economic and military industry, and the steel production is deeply affected by external factors like economy and wars. Steel industry in the United States had once experienced prosperity and had begun to slow down its growth pace since 1960s. On the influence of increasing volume of steel import, crisis faced the steel industry these years. But the industry had begun to revive in 2017. According to related statistics, “The United States produced about 90.1 million tons of steel in 2017, a 4.3% increase over the last year.” And “domestic steel mills ran at a capacity of 74.3%, up from 70.5%in 2016.” Such statistics performance may be a good news for the steel manufacturers who require to increase sales volume and create more job opportunities.

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Many complex factors led to the slow growth of the steel industry in the US. Energy crisis in the 20th century made the industry suffer a serious defeat and a lot of steel enterprises wound up at that time. The crisis had also made the enterprise failed to get sufficient resource to support technology innovation so that the domestic competitiveness was reduced compared with other countries. What’s more, the advent of new materials and technologies decreased demand of steel, which had negative influence on the steel industry. For example, construction projects chose to use new material instead of steel, which led to the production reduction of steel. And the change of economic strategy in the US that focused on innovative technology was another vital factor which weakened the steel industry. Moreover, some steel manufacturers accused the economical steel import to the US, and called for trade protection to them.

The negative performance of the steel industry in the US caused unemployment, the industrial capacity of steel was outdated, steel cost increased, etc. While the steel industry tended to revive in 2017, some media thought China’s reduction of steel supply and rising demand forced the steel price to rise, which gave American steel manufacturers a good opportunity to make profit. Steel demand in the US will keep on increasing with the development of private aerospace companies which require a huge amount of demand. The overall housing, construction sectors and the automotive industry steel demand are increasing, thus the price of steel will grow as well, which is also consistent with the steel price growth trend in the world.

Although the United States has not been in the dominant position and is affected by large numbers of factors, the growth climate will give confidence to the steel manufacturers and workers and have positive influence on American economy.

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