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Steel Industry Expects to Soar in 2013

It’s beginning to look more and more like the worldwide economic malaise of the past few years is nearing an end.Slab

That became more evident over the past week when President Sung Chih-Yu of China Steel Corporation, a major steel producer, proclaimed that the current year will be bullish for the sale of steel in Asia and around the world.

My. Sung made his comments during a ceremony which took place in the offices of rival company, Dragon Steel which is located in Longjing District in Taichung City.

The ceremony was being held to mark the opening of the sixth furnace for China Steel Corporation and the second furnace for Dragon Steel Corporation.

The openings of the furnaces are, of course, positive signs that the steel industry is about to flourish in the months ahead or, more realistically, for the remainder of the current year.

In his comments in a speech he made to industry professionals attending the joint ceremony, Mr. Sung noted that he expects growth in the steel industry, for his company and for most others, as well, to easily top what occurred in 2012.

In fact, in anticipation of a surge in orders, China Steel Corporation has raised its wholesale prices for steel for the months of April and May. And, according to Mr. Sung, that momentum is expected to carry forth at least through the month of June.

There was a sobering note in the speech. The President of China Steel Corporation did voice some concern for the second half of 2013. He felt that prices for raw materials, iron ore and coal, may rise and, if that happens, the cost of steel production would increase, as well, pushing up the price for buyers of the critically important construction material. And that, of course, could affect sales.

But, as Mr. Sung also noted, that concern is for something that may or may not happen months from now. He then reminded his audience that first quarter sales for steel have risen a full ten percent over what took place in the fourth quarter of 2012.

That good news is not restricted to Chinese producers. In fact, when the Chinese do well, companies in other countries, such as Australia, tend to do well, too.

And when Australian steel producers are profitable, the national economy reaps the benefits, as well. The point is this: global economies appear to be improving. That’s good for the steel industry – in China, in Australia, too.

And a healthy steel industry virtually assures a strong economy and good times for Australian workers and consumers.

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