US demand for steel mill products is forecast to total 102 million metric tons in 2021, according to Steel Mill Products: United States, a report recently released by Freedonia Focus Reports. The large construction market is expected to underpin growth, while other significant but more slowly expanding markets –motor vehicles, other durable goods, and metal packaging – will support demand.
US demand for steel mill products is primarily determined by the domestic production of durable goods and components with steel content. Discrete markets include motor vehicles, construction, appliances, machinery, and packaging. Service centers and distributors serve in turn a portion of the aforementioned customer base as intermediaries, but they also export some 6% of their shipments in value terms, particularly to Canada and Mexico. As such, foreign steel-consuming industries exert some influence on US steel mill product demand.
Increased investment in bridge repair and replacement will stimulate growth in demand for steel, although competition from reinforced concrete will limit gains. In the nonbuilding sector, construction of utilities is forecast to increase 1.2% yearly to 2021, aiding demand for steel in applications such as utility distribution poles. Declines in industrial building activity will restrain further advances.
Source: Freedonia Group
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