A lot of the news in the steel industry today relates to the global economic slowdown that is affecting many industries world wide. With steel manufacture all over the world declining due to low demand, steel prices have dropped over the past few months. The credit crunch is putting a strain on both manufacturers of steel and on customers as well, and like a lot of other industries - doom and gloom predictions seem to be the norm. However amidst all of this chaos and economic strife there is a lot of exciting and innovative new projects that are still happening. In order to have a true and balanced view of the current state of affairs in the steel industry, it is important to focus on the positives and not just on the negatives.
The steel industry is a huge global force that continues to spread throughout the entire world. Steel is widely used in many different circumstances, from the construction of railways to the major infrastructure projects and buildings in cities everywhere. Airports, skyscrapers and bridges, stadiums and ships are a few examples of the large scale projects that require steel for their manufacture. On a smaller scale; cars, pipelines, nails and Screwed Fittings (Gewindefittings) are all manufactured with steel. Because of the pervasive nature of steel in daily life, any news relating to the steel industry has a number of wide ranging consequences for a lot of people. The current down turn in the industry does have an effect on employment rates, general consumer spending and investment in the future of the industry.
One of the biggest news stories in late 2008 is the worrying drop in prices of steel and iron ore around the world. Iron ore is often referred to as one of the cash cow commodities, and its big price drop in the last couple of months is a big worry for the entire industry. Iron ore has gone from US$200 a metric ton early in 2008 to only about US$70 today in November. While this may not be big news in the television newsroom, online steel websites and economic forecasters are very concerned. The world’s leader in iron ore mining is cutting production in response to a lower global demand, as are a few of the other world leaders in iron ore mining.
The huge appetite for steel in China is big news all over the world, with China now consuming about one third of the world’s steel output. This is linked with the lowering of steel prices, as skyrocketing prices in the last few years have put the American market on equal terms with many of its Chinese rivals. As the demand in China grows, steel can be produced at a lower cost and suppliers can compete on a global scale with western nations who have become used to paying high prices. This growth in China is absolutely phenomenal and the annual growth rate since the turn of the century has been 20%.
At the same time as the steel industry gets ready for a tough few years, a few brave producers are putting innovative new products out into the marketplace. New Hosenipple (Schlauchtülle) components and customised parts are still being produced, and they are more accurate and well made than ever before. There are some industry journals available that talk of these achievements and promote some of the better innovations. If the steel industry manages to stay positive and keep developing innovative new products even in times of economic gloom; then everything will surely be alright for the future of the industry.