Steel to see modest growth for 2013: analysts

Apr 11, 2013 | 03:21 PM | Catherine Ngai

Tags  steel, growth forecast, steel outlook, special bar quality, SBQ, OCTG, oil country tubular goods, Mark Parr KeyBanc Capital Markets

NEW ORLEANS — The steel market should see flat to modest growth this year, according to industry analysts, as a number of sectors don’t expect to have the same growth levels seen in 2012.

The growth seen in the automotive, home appliance and defense industries last year hasn’t carried into 2013 as strongly as expected, analysts and market participants said during the Critical Commodities Conference hosted by the American Institute for International Steel and the Port of New Orleans.

This year "is off to an unusually slow start. There were some big changes. SBQ (special bar quality) and OCTG (oil country tubular goods)—both of those markets have cooled dramatically in the face of overbuying in the first half of 2012," according to Mark L. Parr, managing director and steel analyst at Cleveland-based KeyBanc Capital Markets Inc. "Pricing power has not been restored despite imports coming off here in early 2013. And our anecdotal inputs ... every time we go out and make a round of calls, the comments are that things continue to feel weaker."....

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