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US Steel Production Falters on Weak Demand from Energy Sector

How Did the Steel Industry Fare in July amid Chinese Slowdown?

(Continued from Prior Part)

Steel demand from energy sector

Previously, we have noted that most steel demand indicators in the United States look strong. However, the steel demand from the energy sector has been pretty weak. Please note that the energy sector usually accounts for ~10% of the total US steel production.

However, falling crude oil prices have taken their toll on energy (XLE) companies’ capital expenditure budgets. The US rig count is hovering near multi-year lows. Less demand from the energy sector has negatively impacted the demand for tubular steel products. U.S. Steel (X)...