Posted on 03 Nov 2020
The 3 November presidential election is unlikely to directly shake up steel markets in the near-term. Reverberations from the election, however, may be felt in the industry in the weeks and months to come, market sources tell Kallanish.
“Nothing political will have a direct impact on our markets for many, many months, no matter who wins,” says one Midwest service centre executive. “Only worry is protests over the results and Covid closures.”
A source at one top-tier mill says stability - more so than any particular candidate - should be the desired result for the US steel industry.
“The country functions better when there is clarity and direction, regardless of how you think the direction is,” he says. “A prolonged undetermined election outcome would be the worst outcome in my mind.”
A West Coast sheet buyer says a peaceful transfer of power is the main thing he’s pulling for.
“While I personally would like to see an administration change, I hope whatever happens it will be done in a civil manner,” he says. “I survived four years with this administration. While some might argue he supported steel, I wonder if he did. Trump took a page out of the Democrats’ playbook and became more protectionist, and steel prices still crashed prior to Covid. Maybe increasing manufacturing input costs to the highest in the world might choke off demand?”
Source:Kallanish
