Challenged by Global Glut, U.S. Steel Manufacturers Slow Capital Expenditures
SUGAR LAND--May 26, 2016--Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. steel manufacturers are reeling from global oversupply and the flood of inexpensive subsidized imports coming into the market from countries such as China. The integrated steel makers, which have higher costs, are at risk. Some have closed facilities, others scaled back production and most have reduced capital expenditures (capex). Recycling mills, which use scrap steel and in general have lower costs, have fared better, but there are still problems, especially for those that serve the energy markets, which have been hit by low oil and gas prices. Demand for drilling pipe and rig steel has fallen significantly. Within this article: Description of large steel projects in the U.S. Southwest.
