Author: D. Jardini
American Metal Market (AMM) - June 20, 2000
Abstract
The U.S. integrated steel industry currently faces a crisis potentially as significant as that of the early 1980s — and it has nothing to do with e-business. During the dark days of that past decade, over one-third of U.S. steelmaking capacity was shuttered, long-respected organizations imploded, and new industry leaders rose to the forefront. In short, the steel industry underwent structural change that shook the very foundations of the sector. As analysts and observers of the industry on a global basis, we at Hatch Beddows expect the next few years to witness equally profound changes in steel industry organization. Rather than being driven by a crisis of demand, as was the 1980s debacle, the upcoming structural shift will be driven by capital shortages.
