update: March 18th 2020 with the coronavirus scaring the breath out of markets around the world the steel industry like many others has taken a Hit in the US the price of steel is down around 44% since early Feb. 2020 as people around the globe are gearing for a long slow down due to the increse in Coronavirus cases reported.
What is your opinion on this? Will steel prices make a swift recovery? Will they go even lower remember in the 2008 Crisis the prices droped over 80% then in less then 2 years jumped in a great comeback by over 180%.
At the rate of growth in steel production around the world mainly in china and india we could see 2,000,000 MMT of steel produced in 2008. The Steel industry is huge and plays a crucial role in the infrastructure and overall economic development of a country, the Steel industry is often considered to be an indicator of economic progress.
The Boom in China and India’s economy has caused a mass increase in steel demand over the last few years and prices have risen along with the rise in the booming steel market. The steel industry is vital to national security and economic competitiveness. Railroads, automobiles, skyscrapers, bridges, appliances and more are all built and produced with Steel.
With the increase in demand and the rising prices of fuel and electricity we can only expect the cost of steel to keep going up even with slower economies around the world since steels growth is higher in 3rd world countries it is not as affected to a slow down in a few economies there is still plenty of demand in emerging economies.
The steel industry is one of the greener industry’s with a recycling rate of 65-70% it is the most recycled material on the planet. did you know that to make the framing for a 3000 square-foot home you would need about 9 recycled cars for the same with wood you would need to chop down approximately 60-75 trees. As prices of steel rise I suspect recycling levels will rise as well.