Fall of STEEL Industry

I have several friends in the sheet metal fabrication business, and they tell me they've lost several contracts because companies have switched to other materials for enclosures and such, because of the high cost of steel/stainless/aluminum.

Hi Macsimus. perhaps this link will help:

http://www.pmpa.org/index.cfm?fa=viewArticle&b_id=549

Here in the US, It is the automobile industry that is a primary driver of our economy. Auto build this year is down substantially from over 16.5 million units to probably around 13 million units. Add to that curtailment of demand in China, associated with Olympics, and cutbacks in mideast (where all the building is) due to Ramadan, and there is LOW short term demand for steel.

It will be back. Look at the consumption of steel per capita in various countries and you will see that as people modernize their lifestyles they will increase consumption of steel. And since once crafted into products, that steel won't be scrapped for many years- 25-40years in many cases, 5 to 10 years in special cases ike bikesor small appliances. I just gave away a very nice 33 year old bike to charity, It has avoided the scrap industry a long time....

Hopefully the FACTS in the above link will be helpful to showing you a way to further investigate in your immediate market.

Good luck.

milo