Armstrong Steel comments on the strong U.S. steel market, which rebounded quickly from a sharp drop in demand and output at the beginning of the COVID-19 pandemic.
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The COVID-19 pandemic caused chaos all across the globe, and the U.S. steel industry was certainly not immune.
According to Armstrong Steel and industry reports, demand for steel dropped precipitously at the outset of the pandemic but experienced a solid rebound not long after. Thanks to a number of factors -- including increased demand for steel structures as well as massive investment in federal infrastructure projects -- the industry as a whole is trending up.
In the first year of the pandemic, the demand for steel dropped. In January of 2021, for example, steel mills in the United States shipped out roughly 7.4 million net tons of steel. That represented a 5.3% increase over December 2020 but marked a 13.1% decrease year-over-year -- two months before the COVID-19 pandemic hit the U.S.
Diving deeper into the stats, though, it's evident that the industry began to rebound relatively quickly, according to Armstrong Steel Buildings. For instance, steel production in the U.S. reached 6.1 million metric tons as of September 2020, representing a 9.9% increase from just the month before.
Of course, those figures were a 12.3% year-over-year decrease, showing just how far the pandemic plunged production.
Due partly to supply chain issues, steel also experienced a price increase. Steel prices at one point in the middle of the pandemic were 300% higher than they were before the pandemic.
Despite some of those issues resolving themselves over time, prices still remain elevated.
A major reason for this, according to Armstrong Steel, is the increased demand for steel. Domestically, this demand is being helped by the Infrastructure Investment and Jobs Act, passed in late 2021, which allocates $1 trillion to domestic infrastructure projects. Of course, not all those projects will require steel, but many will.
In addition, Armstrong Steel Buildings says the outlook for the U.S. steel industry is strong in large part due to the rising demand for steel structures. Many businesses and individuals are turning away from wood and toward pre-engineered steel for various building needs -- from barns and warehouses to sheds and more.
The recent adoption of pre-engineered steel structures for use in the office building market provides another industry growth sector.
While some recent reports indicate a slower growth rate of 3% for domestic metals and steel production in 2023, the future is bright for steel in the United States.
About Armstrong Steel
As a leading manufacturer of pre-engineered metal buildings, Armstrong Steel Buildings takes pride in delivering high-quality steel buildings across North America. Armstrong Steel Buildings has been delivering high-quality steel buildings for nearly twenty years and provides structures to residential, commercial, agricultural, industrial, cannabis, government, and military agencies.
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