Connect with us

Business

What To Expect From The Steel Industry

The demand for steel has always been strongly correlated with the health of the international housing market, and the overall economy. As an overall economy improves, the number of housing and commercial building projects jumps significantly, which leads to a far greater demand for steel. Because the housing and infrastructure markets demand the largest amount of steel, and since both of those markets continue to be sluggish at best, we wouldn’t get our hopes up for a high performing steel industry in the coming years.

United States

In the United States, 2012 figures showed a year in which we saw the demand for steel decrease. The down economy was largely to blame, as there were far less housing projects available compared to a decade ago. Another reason for the decline in overall steel demand was the end of the 2008 stimulus package. This package initiated various infrastructure projects, and the majority of those projects were completed by the end of 2011. In fact, nearly 15 percent of all infrastructure projects in 2012 were a direct result of the 2008 economic stimulus package.

Of course, other industries use steel too, with the second-largest being the automobile industry. Again, a down economy leads to a decline in the purchases of high cost items, such as homes and automobiles. With less of a demand for automobiles comes far less demand for steel.

Steel Demand

The domestic price of steel fell 13.4 percent in 2012, and you can count on seeing that trend continue into 2013 in the United States. Until the economy sees a significant boom, the demand for steel will stay low.
However, not all nations are decreasing their steel usage. China was one of the top steel users in 2012, and we may see that continue into 2013. China’s growth in infrastructure and their increased demand for automobiles have been outstanding, and their use of steel is much greater than that of the United States. China actually used 2.5 times as much steel as America in 2012. Surrounding countries like Vietnam and Thailand are expected to demand more steel in the coming years, so continued economic growth in the region is expected.

Carbon Steel

Not all types of steel are created equally. Carbon steel, for example, is much different than stainless steel and, is used to create different products. Stainless steel has typically been used to create high quality and small item products such as car accessories and watches, while carbon steel is utilized for large volume items such as steel bars and rolled steel.
The demand for stainless steel is expected to see a much sharper decline in demand than carbon steel, as its use is directly tied to the demand of luxury items. Since carbon steel is used for a wider range of goods and markets, its demand should remain more consistent in the coming years. Alloy steel, which is used largely in the construction and housing market, can be expected to see a decline in demand in most nations.
Carbon steel might be the only primary steel type which will not suffer from the economy, as it used across a more diverse industry. This allows manufacturers that produce a wider range of steel types to endure the economic hardship in the United States.

Conclusion

Ultimately, the need for steel will eventually improve. Buyers still need homes and cars, and they won’t put off big purchases like them forever. Additionally, as prices for steel decrease as a result of a down economy, demand for cheaper steel will pick back up. Carbon steel is perhaps the only type of steel whose use will remain steady in the next couple of years, but you can bet that the use of stainless and alloy steels will eventually increase as well.

Featured images:
  •  License: Creative Commons image source

This article was contributed by Capital Steel and Wire, distributors of hot rolled steel products.

Continue Reading

Recent Posts

Home Improvement3 weeks ago

How To Add More Value To Your Home

If you have some spare cash in the bank, it is likely you would like to spend it on your...

Lifestyle3 weeks ago

What is a Deep Plane Facelift

Cosmetic surgery is a choice that needs a lot of research and when it comes to thinking about a facelift...

Entrepreneur3 weeks ago

Unveiling the Demand for Digital Marketing Courses: A Comprehensive Analysis

In recent years, the realm of marketing has undergone a seismic shift propelled by the digital revolution. As businesses increasingly...

Home Improvement1 month ago

What Does an Effective Wardrobe Spring Clean Entail?

Spring is upon us which means one thing and one thing only. It is time for the annual purge of...

Business3 months ago

Your Basic Guide To Creating A Unique Investment Blog

Starting your own blog is great and once you get the ball rolling, it can be a good passive income...

Business3 months ago

3 Low-Risk Ways To Get Your New Business Started

Once you’ve got an initial business idea and believe that it will be a success, there are some basic things...

Lifestyle3 months ago

Conquering the Co-free Zone: Tips for Thriving as a Remote Worker

Adjusting to an office environment can come with its downfalls in the sense that it might be a shock to...

General4 months ago

3 Ways To Take Control Of Your Finances Starting Now

If your finances have taken over and are bringing stress to your life, we understand just how overwhelming it can...

Travel6 months ago

Best Places To Visit In The North Of England

If you live in England, you will know there are many different places to visit for the weekend. There are...

General6 months ago

Green Home Improvement Ideas

In a world where environmental concerns are growing, the concept of “green” has gone beyond a trendy catchphrase and is...

Lifestyle6 months ago

How to Host an Unforgettable House-Warming!

The time has finally come. You have moved into your dream pad, and are officially adulting in your very own...

Autos6 months ago

A Guide to Parking Lot Striping

The journey to a well-striped parking lot begins with the right paint. In this brief guide, we’ll unravel the mystery...

Business9 months ago

Business Tips For Protecting Your Finances During A Recession

In 2023, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Lifestyle9 months ago

Tips For Cleaning Your Trainers

If you’re into your trainers and streetwear, you’re likely to be very conscious of keeping them looking their best! So,...

Marketing10 months ago

Branding Trends For Start-Ups in 2023

Branding is incredibly important as it impacts how your business reaches and connects with its target market. If you’re branding...

Categories

Archives

Trending