Must-know: Why China influences the US steel industry - Market Realist
Printable View
South American countries are starting to get their own steel industries up and running, and look to African nations soon to join the fun.
Due to increasing costs, many companies are moving operations to Africa from China ( Ethiopian is becoming a major manufacturing hub )
The steel industry ( prices ) is mainly influenced by the commodity exchanges , which are influenced mostly by people who have no intention of buying or selling any physical commodities .
As far as the US goes - we have almost NO steel industry left. There are 7 steel smelters left in this country as of 2013 [*1]. Our scrap gets bundled into bails and shipped off to another country to be turned into raw stock, which is shipped off to some were else to be turned into consumables which are than imported back to the US.
(( Goes on long rant about US over regulation and taxation ))
[*1] The same year, the last lead refiner in the US closed down .
Two and one half months after you posted this, more information has become available. Source: Scrap Metal Bulletin. Instead of buying scrap, it is expected that China will be flooding the market with scrap. Yunkman warned me, put I failed to react. Expect metal prices to fall. India's purchase was short term and metal commodity buyers are buying short. It might be a cold, lonely, and long winter for some of us. Hope I am wrong.
If I was always right, I would be rich from the stock market.
Here in Indiana they keep popping up these mini-mills, and growing so I don't think their going away soon.Quote:
As far as the US goes - we have almost NO steel industry left. There are 7 steel smelters left in this country as of 2013 [*1]. Our scrap gets bundled into bails and shipped off to another country to be turned into raw stock, which is shipped off to some were else to be turned into consumables which are than imported back to the US.
http://www.nucor.com/story/chapter2/
http://www.steeldynamics.com/about-sdi/overview/
Quote:
As far as the US goes - we have almost NO steel industry left. There are 7 steel smelters left in this country as of 2013 [*1]. Our scrap gets bundled into bails and shipped off to another country to be turned into raw stock, which is shipped off to some were else to be turned into consumables which are than imported back to the US.
7??? When I look at the the steel dot org map (steelplant_north america 2013) I see a whole lot more than seven melt shops in the united states. where did you get that number from? it is obviously wrong.
Thanks hobo finds
For share this link.