The Latest in Steel Market

Steel is one of the world’s most common metals, as well as one of the oldest. Although steel was discovered in the 13th century, it was not practical until Henry Bessemer figured out how to mass produce it in the 1800’s. Since then the steel industry has boomed with an average of over 1.3 billion tons of steel being produced every year. Steel is most commonly used in ships, automobiles, tools, buildings, appliances, and even weapons.

The current steel price is measured in US dollar per metric ton. While prices are starting to rise again the industry did take a pretty big hit when the economy collapsed. Steel was one of the strongest industries when the recession started and unfortunately suffered from one of the largest drops. While prices were low and the future looked grim, the industry has made an astonishing recovery. The price is expected to continue to rise in the future as new ways to use the steel are developed each year.

The latest in steel news is a potential merger between two Japanese companies. Nippon Steel Corporation and Sumitomo Metal Industries are looking to combine, make the fourth largest steel company in the world. The Fair Trade Commission has the final say in the matter; however, if all goes according to plan the companies will become one in 2012.

Between the two companies 40% of their steel is exported to other countries around the world. There is not a huge local market for the steel industry and creating one giant company would mean crushing all smaller factories in the area. While small companies would be out of work, most automakers are in favor of the merger. The auto industry is perhaps the company’s biggest client and by combining their efforts together, buying steel would be more affordable for automobile companies.

While steel companies have the space and technology to expand, they don’t have the need. Producing steel has become so streamline that the companies are working themselves out of jobs. Since steel is so simple to produce in mass amounts there is an amble supply of it. Manufactures have the capabilities to produce more than the world demands. Instead of focusing on expanding the industry, manufactures are now focusing on making their plants green. Companies are looking for new ways to limit emissions cast into the air and use renewable energy for the manufacturing process.

Steel remains a staple in our economy and it looks to stay that way for years to come. With new production advancements made every year it looks like the steel industry will make a full recovery from its drop in the stock market in recent years.