Headwall Partners Announces Publication — ‘Headwall 2021 Steel & Metals Outlook Survey’

Headwall Partners LLC (“Headwall Partners” or “Headwall”), an independent corporate finance and strategic advisory firm primarily focused on the steel, metals, and mining industries, today announced the publication of its fifth annual “Headwall Steel & Metals Outlook Survey”. Headwall’s annual survey examines the perspectives of corporate leaders of the North American steel & metals industry regarding their outlook for sources and rates of sector growth and the impact of economic policy and politics on such growth. Special for this year, the survey also examines the expectations for the impact of anticipated Biden Administration policies and the impact of COVID-19.

Peter J. Scott, Founder and Managing Partner of Headwall Partners commented, “This year’s outlook survey draws some very interesting conclusions from senior sector executives, including an expectation for the return of inflation and higher taxes, a near-term correction in steel and aluminum prices, and the potential near-term elimination of the Section 232 import protections.”

Headwall conducted a detailed survey of sector executives at the Chairman, CEO and CFO levels to assess how management teams in the metals industry are pursuing growth.  The 33 participating companies represented a broad spectrum of the industry’s subsectors, company sizes, and ownership structures.  Sample survey results include:

  • 55% of respondents expect a 9% or greater increase in revenue in 2021 over 2020, the highest one-year growth expectation in the history of the survey;
  • 48% of respondents expect the hot rolled coil price to dip below $750 / ton in 2021 while 33% of respondents expect the P1020 aluminum price to dip below $1,850 / tonne in 2021;
  • 82% of respondents expect US inflation to be greater than 2% in the next 3-5 years (versus an inflation rate of 0.6% in 2020);
  • 64% of respondents view the financial and economic impact of Biden Administration policies as negative for the economy and 58% view those policies as being negative for their company;
  • 73% expect the Biden Administration to implement a significant infrastructure spending plan in the next 4 years;
  • 54% expect the Biden Administration to remove the Section 232 import protection within the next year, 72% expect so within 2 years;
  • 61% believe that infrastructure spending will be the policy of the Biden Administration with the greatest positive impact on their company’s growth, and 48% believe corporate taxes will be the Biden policy with the greatest negative impact;
  • 94% of respondents expect higher tax rates over the next 5 years;
  • 58% of respondents expect to maintain flexibility for employees to “work from home” post-COVID.

The complete results of Headwall’s survey can be found here.

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About Headwall Partners

Headwall Partners LLC is a corporate finance and strategic advisory firm focused principally on the steel, metals, and mining industry. Led by veteran investment banker Peter J. Scott, Headwall Partners provides strategic advice on mergers and acquisitions, debt and equity placements, restructurings, valuations, and other financial services.  Clients rely on Headwall Partners for its in-depth industry knowledge, candid advice, and intellectual rigor. Headwall Partners conducts its business in alliance with affiliate firms in order to augment Headwall’s industry expertise with the specific product expertise of its affiliates. Headwall Partners is based in Greenwich, Connecticut, and serves clients globally. To learn more about Headwall Partners, please visit  www.headwallpartners.com.

Transactions in securities are executed by a registered broker dealer.

Contact:
Peter J. Scott
Managing Partner
+1 855-432-3925
peter.scott@headwallpartners.com

For Media Inquiries:
Vivian Chen
Managing Director
+1 917-449-4918
media@headwallpartners.com
 

Source: Headwall Partners LLC