Stelco CEO See Historic Steel Demand Recovery
Bloomberg reported that Canadian steel maker Stelco Holdings Inc’s top boss sees a historic rebound ahead that’ll drive a surge in steel demand that the already bullish executive didn’t anticipate back in February. Stelco Chief Executive Officer Mr Alan Kestenbaum said in a phone interview “I was optimistic two weeks ago, but what I learned the last couple weeks is the extent of the end market demand. It’s there, and I think we’re going to see a historic rebound here as people get out and start living again.”
Mr Kestenbaum credits his revised outlook to better visibility on upcoming US car sales and a pickup in oil drilling. He said “Automobile sales will start surging in the third quarter, with the rally in full swing in the last three months of the year as North Americans begin returning to normal life after the rollout of Covid-19 vaccines and auto sales will rising to the low to mid 20 million range for 2022.”
He added “Pipe inventories are dropping and Stelco is starting to get a big inflow of orders now from energy companies, just as rig counts perk up.”
Mr Kestenbaum said the nearly 9% jump in hot-rolled coil prices seen since Stelco’s February earnings report will certainly flow into May pricing.