The U.S. steel industry is feeling the sting from the United Auto Workers' strike against Detroit's Big Three automakers. Demand for steel has been falling for months in anticipation of the strike that is now in its third week, sending prices tumbling. The Wall Street Journal reported the price for coiled sheet steel has plummeted 40% since April, and companies are pulling back on production. The United States Steel Corp.
The ongoing UAW strike is the first time the union has launched a simultaneous strike against Ford, General Motors and Stellantis, but so far it has been limited in its scope, targeting only certain plants. Currently, around 25,000 of the 150,000 UAW members employed by the Big Three are on strike, but the union has not ruled out expanding the strike nationwide if talks drag on.
The longer the strike lasts, the more damage it will do to automakers and reverberate to other industries, particularly suppliers, which are already taking a direct hit. Data from Michigan economic consulting firm Anderson Economic Group show the UAW's strike against the Big Three cost the U.S. economy $3.95 billion in its first two weeks. GET FOX BUSINESS ON THE GO BY CLICKING HERE Previous UAW strikes have also led to significant declines in steel prices, according to Metal Miner.