The global steel industry faces challenges such as persistent inflation and high interest rates, weakening demand in industrial and construction sectors. The World Steel Association predicts a modest demand increase of 1.7% to 1.793 billion metric tons in 2024, down 19 million metric tons from earlier forecasts. For 2025, demand is expected to grow by just 1.2% to 1.815 billion metric tons.

China, producing over half of the world’s raw steel, saw a 1.4% decrease in June production from May and a slight 0.2% increase compared to June 2023. India’s output increased by 0.8% in June and 6.0% year-over-year. Meanwhile, Japan and the U.S. experienced declines in both monthly and year-over-year production.

These figures reflect carbon steel produced in basic-oxygen or electric arc furnaces, excluding specialty and stainless steel.

Source:

In a statement Sunday, Aug. 13, the U.S. Steel board said it has hired investment bankers and attorneys to help them look over those offers as well as others expected to follow now that the company, which is on track to ring up $20 billion in sales this year, is formally on the market, or “exploring strategic alternatives” in corporate speak. Shortly after U.S. Steel’s statement, the leaders of Cleveland-Cliffs went public with their cash-and-stock offer, which they said they first submitted July 28 but which was rejected Aug. 13 as “unreasonable.”

“U.S. Steel has been on a strategic journey executing a compelling transformation,” President, CEO and Director Dave Burritt said in the company’s statement. “The interest demonstrated by the unsolicited proposals received to date is a validation of U. S. Steel’s strategy and successful track record of execution.”

Burritt and his executive team recently reported second-quarter profits of $477 million, less than half those from the same period of 2022, on sales of $5.0 billion versus $6.3 billion. Year-over-year price drops of about 20% for both its flat-rolled and mini-mill products accounted for much of the profits drop and Burritt at the time called out “healthy sequential growth” in the mini-mill segment.

“Our strategic process is accelerating with favorable external megatrends and setting up a period of tremendous opportunity for U.S. Steel and for our stockholders,” Burritt said on a conference call after reporting those Q2 numbers. “Broadly speaking, those external factors are decarbonization, deglobalization and digitization.”

Cleveland-Cliffs Chairman, President and CEO Lourenco Goncalves said in a statement of his own that he is open to continuing a conversation with U.S. Steel leaders despite their rejection of his bid, which includes plans for Cleveland-Cliffs to return more capital to shareholders and relaunch the dividend it suspended during the early days of the COVID-19 pandemic.

Source: