The trade war unleashed by the administration of President Donald Trump worries a large part of the American industry, but only the steel industry has the potential to make record profits.
The tariffs imposed by the United States on imported steel boosted the price of rolled steel, which contributed to record profits for American steel producers. Reliance Steel & Aluminum records 18% profit growth and, with record sales, Nucor recorded the best second quarter in its history with more than doubled net profit.
Financial results this week will be announced by US steel companies US Steel and AK Steel. Analysts are also expecting a jump in earnings, albeit not as significant as in the case of their competitors, as both companies execute on-time, fixed-price contracts that expire at the end of the year.
But overall the situation is very different from the outlook for steel consumers, as other industries in America are facing difficult times. GM cut its earnings forecast last week as it was driven by a $ 300 million increase in commodity prices on higher steel and aluminum costs.
US steel industry benefits from trade war
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Azovpromstal® 30 July 2018 г. 10:40 |
