Current State of The Global Steel Industry

Posted by Mikalah On March - 1 - 2017 0 Comment

Steel is an alloy that is primarily composed of iron and varying traces of carbon.

It has been a widely used metal throughout history by construction and manufacturing industries, and is still one of the most essential supplies used in designs structures today. The grading of steel is determined based on physical, mechanical and chemical properties and corrosion resistance. The high demand for all steel types, particularly cold drawn steel bar supplied from manufacturers like Capital Steel & Wire, is due to several factors:

Steel has the capability to bend and be shaped to fit almost any imaginable architectural requirements that modern day trends may demand.

  • It can be formed right at a construction site to create a solid framework needed to support concrete.
  • Steel has sustained popularity because of its versatility and because it can be completely recycled.
  • It is used in the manufacturing of various products and appliances ranging from cookware to buildings.

The current steel trade industry has expanded worldwide. Compared to other countries, China steel was cheaper. With this being the case, more and more countries are agreeable to negotiate steel trading with suppliers in China. Another huge supplier of steel is Japan. However, according to the National Economic Association, current trends point towards a shift in steel production and consumption in these two countries. Ironically, the decline of steel consumption in Japan and China has greatly affected the ratio of international steel usage, since until recently, both countries were the largest consumers of steel globally.

There are many theories as to why this has occurred. Whether it is due to the Chinese government’s effort to reduce speculation of property, the closure of almost 40% of Chinese manufacturing factories, or the recent earthquake that resulted in widespread devastation in Japan, each countries’ decreased consumption of steel is undeniable.

This has put India in the perfect position to become a major consumer of hot rolled steel bar due to its expansive role in the international manufacturing market. Second to the USA, India’s consumption of steel has increased its demand in that country, with Brazil in hot pursuit of taking third place. Understandably, the supply of steel has brought on an increasingly strong demand in the electrical goods, machinery, manufacturing, motor vehicle production, as well as the construction industries.

With the steel demand growing across all types of manufacturing in overseas countries at a significantly high rate, it will continue to have a strong influence with all sizes of building projects and a wide range of commercial products as long as steel’s raw materials are available. Undoubtedly, there should be much growth related to the steel industry in the years to come.

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