The stainless-steel industry is seeing a slow recovery from the financial crisis. In December 2013, The American Iron and Steel Institute (AISI) published a study, elaborating on the development of steel products shipping. The report detailed that in October 2013, 42CrMo4 steel and suppliers in USA shipped a total of 8,287,553 tons to customers. This is a 5.2% increase from the 7,879,747 tons shipped in September 2013.
This can be in congruence with an announcement produced by the World Steel Association in December also. The international trade body announced that global steel production has risen to 127 million tons, providing an overall increase of 3.6%. Although this is good news for the steel industry in general, one has to ask the question, how can this benefit stainless-steel producers and suppliers in america?
There are auto recyclers and auto dismantlers which remove the functional parts and then sell them in the market. Parts which are damaged and can’t be reused are recycled for various kinds of applications. Various fluids in the vehicle are also recycled. Fluids that can’t be recycled are discarded without adversely affecting the surroundings. The metallic portion which is mostly steel is crushed into a small chunk and then shred. The shredded steel is reused.
Steel is needed in a large amount of areas. But manufacturing steel is definitely an elaborate process using up a number of our natural resources. If steel is recycled from cars, it is going to help reduce the requirement to manufacture new steel which may benefit environmental surroundings.
There are lots of benefits that may be reaped by these events not merely for stainless-steel producers but investors and customers as well. Reinvestment in US Companies: For quite a while, there is a trend of worth investors looking towards Latin America, China, and even India for making an investment in steel production companies. Having an impending huge growth of the SKD61 steel in the US yet again, value investors may now think back to our own shores for investment opportunities. This could also make method for new customers and investors.
Opportunities for Better Service Offerings: While an economic crisis is depressing to put it mildly, there is always an opportunity to go back to the investigation phase and produce better service offerings. Numerous steel conferences and expos round the country are seeing several technologies being presented by stainless pipe suppliers and producers. Companies are introducing better flash welding techniques, new coil joining methods for automotive grade materials, improvements in machine controls, and new strategies for creating high strength steel. These will help immensely in bringing in new clients from US and aboard.
New Foreign Customers: The longevity of US steel is unprecedented. The overall quality of materials, new design and production techniques, and focus on excellent logistics and delivery is bringing many foreign clients. Today, you can find major companies from India, China, and Europe getting their steel requirements produced and delivered by US steel producers and suppliers.
Opportunities for Expansion:: The simple fact in the matter is The United States has over 75% of production materials inside the country itself. The steel industry is recognized for its high amounts of productivity in addition to low off wage costs. With many foreign steel producers seeking to make an entry to the US market, the existing growth makes it an excellent time for mergers and acquisitions. One dlhfom find numerous US companies either tying with an international counterpart, acquiring steel mills in USA and abroad as well as opening new factories in foreign countries.
Potential for more Jobs: Perhaps the biggest advantage for US citizens, expansion can lead to more opportunities in the united states and abroad. There are numerous US companies who are concentrating much more on supplying instead of producing S45C steel. With every new stainless steel pipe supplier, there will most likely be 2 to 3 new jobs being created. While the bears and bulls may make an effect on the steel industry, at some point, there will probably always new and better opportunities for growth and expansion.