The Bright Future in the American Steel Industry

U.S. SteelHere at Florida Pipe & Steel, we’re always focused on finding evidence of bright futures in the American steel industry. After decades of taking a beating on the global market, United States firms in the steel manufacturing sector have seen exports grow in a big way over the past few years.

All over the world, steel production has been increasing by record leaps and bounds. Globally, steel production was up by 2.7 percent in 2012, a record period of growth for the global steel industry. And export levels have increased for two of the world’s largest economies: America and China. According to this article published by The Street, Chinese steel exports grew by 12.7 percent in November 2013 over the same period the year before, and American exports in October 2013 were the highest the country had ever recorded during that month.

Other countries are using American steel, but where does that leave American steel firms. U.S. Steel and many other companies are valued low on the stock market, but there are signs that they’re undervalued and will likely grow in price over the next few years. Currently, U.S. Steel has a price-to-sales ratio of 0.22, which means that their sales are largely discounted compared to the stock price, which has risen by more than 34 percent over the previous fiscal quarter.

This low price-to-sales ratio indicates that the current stock price of the company could support an increase in the sale price of U.S. Steel products. And this favorable ratio is being experienced by steel firms all over the country and the world. Investors have begun to take notice, which is why we’ve seen share prices increase for many of these companies in recent months.

2014 looks like it will be a much brighter year for the steel economy, something we haven’t seen in this country since the global financial crisis of 2008 created uncertain waters for everyone. As 2013 comes to a close, Florida Pipe & Steel is looking ahead to the future without trepidation. Give us a call if you have a construction project and want to invest in American steel products.


Written by Katapult Marketing

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