US steelmakers stay positive despite falling profits
Time:Thu, 10 Apr 2025 09:20:21 +0800
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US steelmakers remain financially stable despite a profit margin decline in 2024, following pandemic-era highs. Profit margins dropped to 1.8% in the fourth quarter of 2024, down from a peak of 21.2% in the third quarter of 2021, due to falling prices and weaker demand. However, strong cash reserves, around US$10 billion, are supporting continued investment and low long-term debt.
From 2022 to 2024, the industry added at least 10 million tons of capacity, with more expected. Recent price increases, especially for flat products (up over 40% YTD), may slow the margin decline.
US President Trump reinstated 25% Section 232 tariffs to boost domestic steel, while also encouraging foreign investment. Although the US has an optimistic outlook for its near-term financial performance, the uncertainty of tariff policies and demand may affect domestic investments in the future years.
