Wary Steelmakers Give Legs to Metal’s Rally as Buyers Reel
- ‘Value over volume’ becoming the new mantra in U.S. market
- “It’s a real culture change,” 40-year steel veteran says
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The record rally in steel has further to run as U.S. producers vow not to get burned again by ramping up too fast.
Prices for hot-rolled coil futures in the U.S. have surged more than 80% in 2021, the best start to a year in records going back to 2009 and eclipsing gains in other all major commodities. Prices touched an all-time high last week. Despite customer pleas for more metal, steelmakers that paid steep costs to shut down furnaces in the pandemic have yet to announce new plans to build out capacity, focusing instead on generating record profits for shareholders.