Sunday, April 30, 2017

Factors That Influence Steel Price

Understanding the factors that play an important role in pricing and production is necessary for those in fabrication industry.  The industry uses many types of metals derived from steel. Like any other raw material used in fabrication and manufacturing a number of factors are influential.   
The factors affecting may not necessarily be local but nowadays global impacts are applicable to nearly all industries. Hence some of these are: 

OIL Prices  


Oil prices govern all industries that are energy dependant directly or indirectly. More so the effect could be indirect because alternate energy production in a way is linked to oil prices. The fossil fuel is required during the production of steel hence high price means high cost of production.     



Demand 



Both local and international steel demands affect the selling prices. It is a competitive industry and high or low demand has a definite impact on the sales.   



Construction  



Steel in one form or other is required by the construction industry. Hence the demand for the raw material is directly in proportion to the construction activity. In recent times this industry is experiencing a boom in US and many other countries of the World. 


New methodologies like fabrication of light weight steel to make building parts has further the demand. World over the steel fabrication business is on the rise. This is due to cost reduction and long term benefits of lightweight steel fabrication. Quick installation is another virtue due to which this technology is gaining grounds.        

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