Stronger Than Ever: Steel Rebounds to Start the Year

The steel industry started the year with a bang. Prices for the commodity have rebounded from the low at the end of last year, with various producers announcing price hikes from December into February. While rebar and plate prices are still off from the extreme levels seen about a year ago, they are up modestly to start the year and may be poised to move higher. Spreads on rebar and plate steel have compressed some with the rise in input prices; however, they are still above historical averages and expected to remain there. With a seasonally stronger period on the horizon and other factors, including the U.S. Infrastructure Act, a recovery in automobile production and demand from overseas, the steel industry is well-positioned for a continued rebound.