Russia Running from American Steel

If you needed any more proof into how much the American steel industry has run away from itself, then you have to look no further than a Russian company which had been involved in the sheet steel industry for some time in the United States, deciding to actually back out of the United States steel industry after having an impact on it since 2004. Much of the decision came from sheet steel prices finally rising back up to reasonable levels after the recession hit.

Before this sale, more than 50% of the American steel industry was actually foreign owned, particularly by the Russian company Severstal. However, Severstal has wanted out of the US market ever since the recession when they bought multiple companies right before the drop, and now that they can make a profit again off selling the mills and companies they bought, that is exactly what they are doing. This means that for once in over a decade the majority of the American steel industry will actually be domestic owned.

No one is quite sure if this will impact the steel industry in any crucial way currently, but more will be known when the deals are finalized sometime at the end of the year. One thing is for sure though, Russia is not breaking away from the steel industry completely. There have been negotiations about the removal of a 15-year-old bill hampering the sheet steel industry. It also seems that Severstal is simply going to supply the sheet metal industry from their cozy homes in Russia rather than having a hand in the American steel cookie jar.

For now, much of the sheet steel industry will belong to an Ohio based company and an Indiana based company, both steel companies that have been trying to make a bigger embrace into the market. They may do just that now.

Source: http://blogs.platts.com/2014/08/07/severstal-steel-us/.

Written by Katapult Marketing

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