US Steel believes that the domestic and European steel markets can only go up after a turbulent 2019, Kallanish learns from the company’s year-end earnings review. 

“Looking to 2020, we believe markets in the US have hit a bottom,” says ceo David Burritt on a conference call with analysts. “Our flat-rolled order book is healthy and customer interaction suggest demand should be solid. We are particularly optimistic about construction activity, which has shown strong demand in typically weak seasonal periods. The automotive market remains strong as inventory levels enter the year low and recent industry publications suggest build schedules should increase in 2020.”

Burritt adds that service centre inventory levels are also encouraging, as are mill lead times at about 5.6 weeks. 

“Inventory levels at service centres are also at levels that suggest 2020 buying activity should increase. We are beginning in 2020 with the lowest month on hand to start the year since 2014. In Europe, improving prices are beginning to increase market sentiment, distributors and service centres have low inventories and steel production cuts across Europe have better balanced supply with demand.”