The outlook for the global steel industry for 2008 is favorable, supported largely by continuing elevated demand from emerging economies. Indeed, global demand for steel is expected to increase 4.9% annually through 2010.
Steel Dynamics' recent acquisitions of the steel scrap processor Omnisource and of an iron ore mine from Cleveland-Cliffs (CLF) will work to protect the company's financials in case of volatile pricing swings of these materials.
The currently devalued dollar not only makes foreign steel less attractive to domestic consumers, but it makes U.S.-made steel more attractive to foreign consumers. Fewer foreign steel imports into the U.S. simply means less direct competition in the domestic market.