Lead Forensics

Supply and price of steel to remain steady

Despite concerns over Russia and Ukraine, there is plenty of steel available at reasonable prices.

Many industries rely on steel. For example, every warehouse equipment manufacturer needs a supply of tubular steel to manufacture picking trolleys, packing tables, storage racks and other equipment.

Demand for steel is expected to rise as the world embraces cleaner energy, as most clean energy technology requires steel. For example, the batteries used in electric cars are very heavy and require strong steel compartments to support them. If the world embraces hydrogen, steel will be needed for the tanks and pipelines of the hydrogen infrastructure.

Ukraine and Russia are major suppliers of steel. Steel is still being produced in Ukraine, but at reduced capacity and export routes are limited. Russia is exporting steel, but the number of countries buying its steel has diminished due to sanctions. However, there are plenty of other steel-producing countries that can supply the world’s increasing demand for steel.

In China, the world’s largest producer of steel, the contraction of the construction industry has lessened the demand for steel, but production has not been reduced. This has caused a steel surplus.

Europe is the second largest steel producer after China, producing over 177 million tonnes per year. There is plenty of steel for sale in Europe.

In a recent report, Dan Smith, a Market Analyst at Fastmarkets, said that, due to a plentiful supply of steel, prices are expected to remain steady for the rest of the year. This is positive news for manufacturers of equipment made from steel and their customers.

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