UK steelsuppliers have the opportunity to capitalise on a resetting of the globalmarket, as the recent economic turbulence has tightened its grip on over-supplyin China.
According toa report from IMS Research, Chinese steel production was one segment with anabundance of supply going into the global recession.
But it adds:”In 2011, even nationwide projects were postponed, and the metal andsteel, cement, and glass manufacturing industries fell seriously.”
Now work onsuch projects – including railway construction and large infrastructure likehydropower – is restarting, and the reset market could be good news for UKsteel suppliers.
Theopportunity to export to the Chinese market if demand outstrips supply is onlyone element in this, and while it could boost steel stockists’ earnings in theUK, domestic demand will be the main focus for many.
But withChina likely to drop exports if its demand for its own steel rises, that couldhave a knock-on effect for domestic steel stockists the world over.
Locallysourced structural steel is likely to see a resurgence of interest as a result,thanks to the greater reliability of supply, lower transport costs associatedwith delivery, and reduced carbon footprint incurred during transportation.