US steel industry: Consolidation helps, more expected

US steel industry: Consolidation helps, more expected

Steel industry executives agree on one thing: The recent consolidation of the US steel industry has been a great benefit. Speaking at the Association for Iron & Steel Technology’s annual conference in Charlotte, North Carolina, executives pointed to consolidation as the impetus behind the American steel industry’s tremendous turnaround in recent years. Nucor’s CEO Dan DiMicco underscored the sentiment shared by other executives from top US companies when he said, “consolidation is driving us to be a healthier industry with better long-term sustainability.” He went on to highlight the recent merger of Mittal Steel Company and International Steel Group, Inc., “it is the single biggest event in this industry and a sign of things to come.” Together, the two companies can annually produce 70 million tons of steel with a set goal of 100 million tons or 10% of current international steel production. DiMicco pointed out that the US’s consolidation trend may be only a starting point and international consolidation may be the next wave in the steel industry. He went on to assert that when the US industry sees it next downturn, further consolidation is sure to occur.