Reuters reported that guarded optimism surrounds expectations for a 2012 recovery in the US steel industry, as much will depend on how firm the recoveries are in the construction and automotive sectors of the economy.
Mr Thomas Danjczek president of the Steel Manufactures Association said that "We are cautiously optimistic, challenged by the time frame. Are we out of it in 2012? From a steel perspective, I would put an awful lot of it on automotive and construction. If automotive continues to grind back, and if construction does come back in 2012, yes. If it's slower than that, then we will be slower."
Mr Danjczek said that domestic steel production has since improved, with the industry now operating at about 70% utilization or about 37 million tonnes in the quarter. He added that "There's some reason for optimism, but we are still a long way away. There are places that are positive. Pipe, plate and flat rolled are doing very well, but construction is not. It's a mixed bag."
It may be noted that in the aftermath of the global economic downturn, US steel production took a significant hit, with output slowing to just 25 million tonnes in the first half of 2009, as consumer demand for cars and new homes nearly disappeared.