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PrintDan DiMicco, chairman, president and CEO of Nucor, said Monday that the steel market in the US has not hit bottom yet and warned recovery could be slow.
Speaking in his capacity as vice chairman of the Washington-based American Iron and Steel Institute at a press briefing/teleconference held during the group's annual meeting in Phoenix, Arizona, DiMicco added that on the heels of a weak first quarter, the industry's order entry has continued to slow. "We're just not there yet," he said.
AISI Chairman, Jim Wainscott, CEO of AK Steel, noted that there has been some demand improvement from the appliances sector -- including HVAC systems -- for products such as electrical and stainless steels. Still, he echoed DiMicco in saying that the industry has "nearly reached bottom."
Tim Timken, also AISI vice chairman and CEO of The Timken Company, said the current environment is "likely the worst economy in our lifetime," but that the steel industry has the potential to come out even stronger. "Now more than ever," said Timken, "we need to remind policy makers that America's steel industry has taken the lead."
All three executives emphasized the AISI's top two priorities that the issue of global climate change policy is adequately addressed by the US administration and lawmakers, and that trade policy is an administration priority so that US steelmakers "are not undercut" by offshore governments not trading fairly.
The industry leaders refrained from making a short-term forecast because of the volatility of the market, but Wainscott said, "The domestic industry is well positioned for this situation. It's been through the pains that some manufacturers are experiencing for the first time."
It was noted the industry shipped 13 million st in the first quarter and is now operating at 40% of capacity. DiMicco said the current environment "has tested all of us as we've never been tested before."
He expressed optimism about the long term, but added, "When it kicks in, it will be a long, slow recovery." DiMicco said the AISI was looking toward the US government "to not add burdens to [our] industry to allow us to recover." –Platts
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