The stainless industry is seeing a slow recovery from the financial meltdown. In December 2013, The American Iron and Steel Institute (AISI) published a study, elaborating on the expansion 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 is in congruence for an announcement made by the World Steel Association in December as well. The international trade body announced that global steel production has risen to 127 million tons, providing an overall increase of 3.6%. Even though this is good news for the steel industry generally, one has to ask the question, how can this benefit stainless steel producers and suppliers in america?
You can find auto recyclers and auto dismantlers which remove the functional parts and 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 will also be recycled. Fluids that can’t be recycled are discarded without adversely affecting the surroundings. The metallic portion which is mostly steel is crushed right into a small chunk and then shred. The shredded steel is reused.
Steel is required in a lot of areas. But manufacturing steel is definitely an elaborate process using up many of our natural resources. If steel is recycled from cars, it can greatly reduce the need to manufacture new steel which will benefit the environment.
There are many benefits which can be reaped by these events not only for stainless-steel producers but investors and customers also. Reinvestment in US Companies: For a while, there was clearly a trend of worth investors looking towards Latin America, China, and also India for purchasing steel production companies. With the impending huge expansion of the AISI H13 steel in the US once again, value investors are now able to reminisce to our shores for investment opportunities. This can also make way for new clients and investors.
Opportunities for Better Service Offerings: While an economic crisis is depressing to say the least, there exists always the opportunity to go back to the research phase and create better service offerings. A number of steel conferences and expos round the country are seeing a number of new technologies being presented by stainless-steel pipe suppliers and producers. Companies are introducing better flash welding techniques, new coil joining options for automotive grade materials, improvements in machine controls, and new ways of creating high strength steel. These will help immensely in attracting new clients from US and aboard.
New Foreign Customers: The longevity of US steel is unprecedented. The entire quality of materials, new design and production techniques, and focus on excellent logistics and delivery is bringing many foreign clients. Today, you will 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 fact from the matter is America has over 75% of production materials inside the country itself. The steel industry is known for its high degrees of productivity in addition to low off wage costs. With many foreign steel producers seeking to make an entry into the US market, the present growth causes it to be an excellent time for mergers and acquisitions. One dlhfom find several US companies either tying on top of an international counterpart, acquiring steel mills in USA and abroad as well as opening new factories in foreign countries.
Prospect of more Jobs: Probably the biggest advantage for people citizens, expansion can result in more job opportunities in the united states and abroad. There are many US companies who are concentrating more on supplying instead of producing C45 steel. With every new stainless pipe supplier, there will likely be 2 to 3 new jobs being created. While the bears and bulls may make a direct impact on the steel industry, eventually, there may always new and much better opportunities for growth and expansion.