The early part of 2018 was very encouraging in the steel industry as there was a high increase in the price of steel in the world. A lot of steel companies had a positive return after the close of the trading period. Although, there has been a change in that trend towards the end of 2018 and that fall in price has continued until now. The sign of the first drop in the price of steel surfaced in August 2018 and has not shown any sign of a rise at this point.
The downward movement of steel occurred mainly because of the trade tensions between the United States of America and China. In addition, the slow pace of economic growth has a hand in the fall in the price of steel.
At the American Fabrication Academy, we teach fabrication classes with the use of steel. In this class, we would teach you how to take advantage of the current market situation by providing you opportunities to work with steel. The steel metal has a lot of usefulness in every society and it’s very important to the economy world wide. There are various classes that we made available to everyone who is interested in taking classes with us. One of the classes available to anyone who is interested in taking fabrication classes with us, is the car metal fabrication classes included in our Essentials Of Fabrication.
Impact On The Economy
The United State has been the envy of other countries in recent months as the fall in the price of metal steel has not had any negative impact on the steel companies situated in the US. With the tariffs President Trump has put in place, the importation of steel is not a major concern. This has allowed the country to record a low rate of unemployment and a GDP that still amazes numerous people. The domestic mills are making use of this avenue created by Trump to enrich and expand their workspace.
A quick look at the data shows that the prices of all steel products are expected to decline further. The Hot-rolled steel metal, steel plate galvanized steel products and cold-rolled have all declined drastically. Falling from their peaks and reaching a relatively low price over the past few months, this is the longest duration of price fall a year.
Even the service centers that have inventories are looking for every opportunity to offload them. Apart from the low prices they offer to sell the steel products, they also reported giving ridiculous discounts to get their customers to buy their inventories off their hands. Most steel service centers and customers are trying to stay off buying a lot of steel product because there is no visible timeframe when the prices would begin to rise.
Conclusion
The demand for steel is good but the price has abruptly continued to decrease with no clear period of rising. Experts have also said they are a bit confused as to the trend at which the prices have continued to decline. As the saying goes, “there is always light at the end of the tunnel“. Once the price of steel stabilizes, it’ll begin to increase. The people who would benefit from it are the people who are sitting on the sideline waiting for the uptrend in pricing. All you need to do is stay in touch with your trusted suppliers to give you credible updates about the trends in the steel market.