Category Archives: Steel News


The growth of steel industry and the current trend in steel prices

Steel is one of the most important part of almost every industry. Construction of high rise buildings, bridges, metro, roads and factories cannot be imagined without steel. It is used in many forms in the different industries and is a major reinforcement material along with Iron. Steel was invented around 100 years ago. The importance of steel has risen by leaps and bounds due to various reasons and attributes of steel. Steel does not get rusted easily and is light-weight as compared to Iron. It is durable, ductile, malleable, corrosion resistant and fire-resistant among scores of other benefits. All these features of Steel have made it the king of raw materials used in almost every industry.

Steel is mostly used as structural steel which is the most preferred framework material for residential as well as non-residential construction. The steel beams and columns are the skeleton of the building and support the entire construction just like the bones in a body do. Angle bars, I-Beams, H beams, IPE etc. are some of the other structural elements required in the construction. It is therefore clear that steel is indispensable in industries. The growth in the steel industry is a manifestation of this fact. Steel industry across the globe has shown tremendous growth in the past two decades. Government projects involving metro, roads and bridge construction has also fuelled the growth. The growth in the real estate is also linked to the growth in the steel industry. The specially processed steel like galvanized steel has made steel more versatile and fit for various purposes. Some of the commonly used steel products are steel sections, steel pipe, steel tube, steel coil, steel sheet and steel plate. The process of galvanization increases the strength and durability of steel. Steel has several grades and steel prices vary accordingly. Other types of steel are:

  • Galvanized steel
  • Galvalume Steel
  • Prepainted Steel
  • Hot rolled steel
  • Cold rolled steel

The floating steel prices across the globe – A study

Steel prices are not fixed and vary according to the rule of demand and supply. Over the years, the steel prices of reduced considerably and if you have bulk requirement of steel for any purpose, it is the best time to buy. Once the constructions are on in full swing and the recession subsides, the price of steel is likely to skyrocket. The price of steel is also dependent on the grade of steel. Steel can be of different grades depending on its purity and amount of components added to Iron, which is the principle element present in steel. The price of steel also depends on the treatment of steel. For instance, normal steel and galvanized steel have a price difference and so has the Boron added steel equipment. The chromated galvalume steel has a higher price than galvanized steel as it has various advantages in comparison to galvanized steel. Galvalume steel which has the additional property of being anti-fingerprint is priced higher than any other form of steel. Similarly, cold rolled, hot rolled and pre-painted steel also have different prices. Steel prices also vary country to country. There are many countries which produce a lot of iron ore and such countries are able to make their own steel and therefore in the local market, the price of steel is less. However, when the same steel is exported to other countries, the price increases manifold.

Multiple factors come together to control and change the prices of steel globally

The freight charges, custom duty and other taxes are added on to it. The commonly used Steel products that are used for various purposes like construction of bridges, buildings and automobiles, etc. are steel sheets, plates, coils and wires. As they have high tensile strength they are also used for making cables of lifts that are used to carry heavy load. For example, the wires of lift in colliery are made of steel. These wires are used to pull coal and the miners out of the mines. As this requires strength, steel is invariably used for this purpose. All the skyscrapers and high-rise buildings that we see around us cannot stand without the strong support of steel.

  • The steel industry is an evergreen industry as use of steel cannot stop.
  • The steel prices vary from country to country and quality to quality.


Chinese Seamless steel pipe market in Q3, 2014

Chinese seamless pipe industry is through with weakness theme from Janaery to April in 2014,
even though driven by commodities price rebound in early and middle April, it displayed tentative rise. Basically, the depressing market is because of high production along with weak demand. Struggling with tiny profit margins, Those Producers are trying all they can to improve production to fight for the mere profits, which lead to further intensifies market competitions.

Supply exceeds demand home and abroad

Oversupply issue has become increasingly fierce from 2011. Increased via the violent capacity release in 2008, seamless steel pipe output amount grown fast, along with the expanding of abroad market, more and more countries began to release anti-dumping on China’s steel pipes. The problems are going to be more awkward following the commission of TMK’s pipe plant in Saudi Arabia this year as Chinaˉs export to Middle-east areas is under risks of being complained.

The Report showed that Chinaˉs seamless steel pipe production amount is hanging at high levels at this point in 2014, particularly in March when output quantity saw a m-o-m increase of 36.79%, much higher compared to the 20% rise in normal years. The high output weighs on spot market heavily. But Steel Pipe mills are not still targeting at no relax of production in April, leading to the surmise that pipe production would continue to peg at high level in Q2 this year.

Chinaˉs export of seamless steel pipe was decreasing in Q1, 2014, down by 6.02% y-o-y and the export amount was recorded the steepest slope in Feb throughout y-o-y and m-o-m comparisons. It tumbled 34.91% from the same period in 2013 and dropped 45.35% m-o-m.

Imports, on the comparison, are beefing up from 2013. China totally imported 227,400 tonnes of seamless steel pipe in 2013, increasing by 4.91% y-o-y, and the import volume of seamless pipe bounced off up to 51.88% to 67,400 tonnes in the first 3 months in 2014.

Seamless Pipe market may rebound in Q3, 2014

At present, Chinaˉs seamless steel pipe market has fallen to the lowest since 2009, and the downbeat tendency seems far from ending. The depressing Q2 isn’t just a single phenomenon this year, as the Q2s from 2011 have all been witnessing falling pipe markets, but prices could manage to rally or the downward drifting was trending to reduce in Q3s in the past three years. So it is surmised that pipe market would be more prone to grow in Q3.

As a relatively downstream product type across the steel industrial chain, seamless pipes are likely to carry out later than other kind of steel products, which causes the product move less violently than others like rebar or hot rolled coil. However, it shouldn’t be ignored that this year domestic pipe need would be promising. The state is strengthening investment in Middle and West areas and demand for seamless steel pipe in these regions would leap forward. Thus Q3 will be a season enjoying lots of opportunities.


Seven Reasons to Buy Steel from China

With the depression of steel prices on the global market, it has become less expensive, in many cases, to import raw steel from China to finish at local metal manufacturing facilities than to buy locally. Demand currently doesn’t match output, which creates a buyer’s market for steel.

Although price is the major reason to import steel, other reasons include:

  • Depressed prices. Again, China steel manufacturers have overproduced product for what the demand is global. This has caused a depression of steel prices for both foreign and domestic steel. With relaxed tariffs in the US, the cost of imported steel is still less than that of domestic manufacturers and steel mills.
  • Over ordering. Having a lot of raw material setting around can work to your benefit. China’s steel industry has started to slow down their production, but the raw material has already been acquired and is costing manufacturer’s overhead costs just to keep it.
  • High-quality. China’s government has recently tightened up their regulations concerning steel mills, closing many that couldn’t maintain the minimum standards set. This has left the companies that are still in business taking a greater concern on the quality of their products and manufacturing methods.
  • Excellent customer service. With the slowing down of production, China’s steel manufacturers are fighting harder over a smaller market share and offering inducements to get your business. One of the primary inducements they can offer is excellent customer service and keeping current and potential customers happy and satisfied.
  • Price locks. Taking the worry out of a fluctuating market price helps raw steel importers control their bottom line. Instead of waiting for the price to creep down, inhibiting manufacturing while waiting for the price to bottom out, you can plan ahead for costs by ordering now, at the current rate, and having the steel shipped to your facility on your schedule.
  • Dependable shipping schedules. With the accumulation of raw materials, scheduling your order becomes easier. The Chinese companies already have the material for your order in stock and can begin work on it, immediately. This allows for planned ordering and shipping without having to worry about the global market availability.
  • Tariff issues. Currently, the trade atmosphere between China and the US favors the import of steel over buying it within the US. Importing steel, even with the costs of transportation factored in, costs about 10% less than buying from US suppliers.

Modernized facilities and an emphasis on increasing their economic output have made the current dynamic between China and the US a perfect place for finished steel manufacturers. Latest steel prices, cheap shipping and a ready supply of materials will keep Chinese steel flowing into the American marketplace as long as the market will sustain it or until the government steps in to put an end to the market status that Chinese steel currently enjoys.


Market Demand and Economic Uncertainty -Creating the Perfect Time to Import Steel

The current picture of steel manufacturing the world over is driven by two countries. The United States is importing large amounts of raw and finished steel products. China is meeting and exceeding these demands, while also continuing to import large amounts of iron ore in their steel manufacturing industry. Conflicts and agreements between these two countries has created a situation where prices continue to fall and production continues to rise. More products have to be made, or imported, to meet economic demands.

China has been garnering a lot of attention lately with their expansion of steel exports. Currently the largest exporter in the world, Chinese production is still increasing, driving prices down globally and making Chinese steel products cost- and time-effective.

The United States has imported over 10 million metric tons of steel in the first quarter of 2014. Demands in the auto industry and energy drilling have increased and although American steelmakers have filed trade cases arguing for an increase in tariffs, most of those cases are unresolved at present and the market remains open.

Many US steel mills are supporting tariffs against imported finished steel, but are also big importers of raw steel that they use to make finished products. This has created a market that the steel industry is trying to exploit for specific gains, while hurting foreign steel makers for producing the same products for a cheaper price.

Internationally, the price of iron ore is primarily determined by Chinese demand. China is the largest consumer of iron ore in the world, even with the current economic slowdown. This slowdown has resulted in lowering factory output and slowing retail sales. Continuing this trend will result in a depression of the world market for iron ore as less is used and inventory builds up in Chinese ports.

These two factors, increased Chinese manufacture and a looming tariff on importing steel to the US has created the perfect moment for importing steel for your industry or business. Locking in low import prices, now, before the tariff laws raise them will ensure a steady supply of raw or finished steel from China while avoiding the uncertainty that will follow the US tariff decisions.

Good business sense suggests that you buy while prices are low. It is unlikely that production will continue at this level much longer. The economic and manufacturing changes occurring in Chinese steel suppliers will slow production down.  If the tariffs go into effect in the US, the prices for imported steel will necessarily rise. Now is the time to buy steel.

Resource Box:

A general overview of the state of steel imports and exports between the US and China with a look forward at the coming tariff disputes and economic slowdown. The emphasis is on purchasing while steel prices are low and the economic picture is still stable.

Article Summary:

This article highlights the current state of affairs between the US and China over the steel import/export situation. It gives a general overlook of the economic positioning of each country and the most likely outcomes.

Strong Benefits for Galvanized Steel

More and more galvanized steel material was chosen to building construction, why?



No other protective coating for steel provides the long life, durability and predictable performance of hot dip galvanizing.

As asset management and life-cycle costing become even more essential, after fabrication galvanizing provides the facility to design for a predictable, engineered result.

Galvanizing is a once only process, committed to the concept of the maintenance-free use of steel, ensuring long service life and virtually eliminating disruptive maintenance.

This long-term protection is well documented world-wide in terms ahead of any other protective coating, and galvanizing continues to find new applications in almost every field of engineering.

Hot dip galvanizing protects steel from corrosion by providing a thick, tough, metallurgically bonded zinc envelope, which completely covers the steel surface and seals it from the corrosive action of its environment.

The galvanized coating provides outstanding abrasion resistance. Where there is damage or minor discontinuity in the sealing coat of zinc, protection of the steel is maintained by the cathodic action of the surrounding galvanized coating.

Metallic zinc is strongly resistant to the corrosive action of normal environments and hot dip galvanized coatings therefore provide long-term protection for steel.

The galvanizing process produces a durable, abrasion-resistant coating of metallic zinc and zinc-iron alloy layers bonded metallurgically to the steel base and completely covering the work piece. No other coating for steel matches galvanizing’s unique combination of properties and advantages:

1. For most classes of steelwork, galvanizing provides the lowest longterm cost. In many cases galvanizing also provides lowest initial cost.

2. The galvanized coating becomes part of the steel surface it protects.

3. The unique metallurgical structure of the galvanized coating provides outstanding toughness and resistance to mechanical damage in transport, erection and service.

4. The galvanized coating is subject to corrosion at a predictably slow rate, between one-seventeenth and one eightieth that of steel, depending on the environment to which it is exposed.

5. Galvanizing’s cathodic protection for steel ensures that small areas of the base steel exposed through severe impacts or abrasion, are protected from corrosion by the surrounding galvanized coating.

6. An inherent advantage of the process is that a standard minimum coating thickness is applied.