About 32 U.S. steel companies filed for bankruptcy between 1999 and 2003, but not theU.S. Steel. No wonder it’s Cramer’s favorite stock in the sector.
U.S. Steel’s gone from a U.S.-only company with three plants pumping out 12 million tons per year in 2000 to operating in four countries with 50,000 employees and an output of 32 million tons per year today, CEO John Surma told Cramer Wednesday.
And the steel business right now is ripe for American companies, said Surma, an alumni of the Smeal College of Business where Mad Money was filming its latest Back to School Tour show today. Costs across the board have kept competition with firms overseas relatively even. Inventories and imports are low in North America, increasing demand for U.S. steel. Prices are higher abroad. All these conditions have “made our product much, much more competitive,” he said.
Another key point from Surma: As many as 4 billion people in emerging markets are looking to improve almost every facet of their lives, from food to shelter to transportation. “And there’s no really good way to improve life without using large amounts of steel,” he said.
Watch the video for more on U.S. Steel with CEO John Surma.
Find out why the American steel industry'sreturning to prominence in this country.
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