Risk of oversupply remains in North American steel market

The risk of oversupply in the North American steel market continues despite slowly improving demand, according to the international credit rating agency Standard & Poor's (S&P). The weak construction markets and demand that is still below pre-recession levels have left North American steel producers with too much supply.
 
Meanwhile, the slowing economy in China and volatility in Europe continue to impact industries around the world, including steel. The agency affirmed outlooks for most North American steel producers as stable, indicating that imminent rating changes are not expected.
 
In the current year, S&P expects most producers to perform as well as or better than they did in 2011. For 2013, North American steel producers are expected to improve further along with a slow rebound in the domestic markets as the economy continues to slowly expand.