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Steel is the main ingredients of railroads, bridges, skyscrapers, automobiles, construction, transportation, manufacturing,…
World Steel Association, 64 countries of the world have produced about 125 million tons of steel in first eight months of 2011 which is an increment of 9.8% of August 2010 (World Steel Review, October 2011). Since last three years, China is the leading steel producing country while 1/3 of the world’s overall steel is jointly produced by Japan, Russia and United States of America. Economic strength of steel and iron industry is very high in the U.S. The industry is enjoying more than $100 billion projects which is about 10% of the world’s steel industry. Almost more than 1000 strong firms are operating throughout the country offering valuable revenue which is 5% of the total U.S. industrial GDP. The industry was offering its employment to more than 200,000 people in 2001.
Increasing population in many parts of the world especially in BRIC countries has also increased the requirement of steel based products such as new vehicles, appliances and building infrastructures. Government is the first force that plays two critical roles. First, local and international sustainable and environmental laws are put into effect to protect the environment from adverse effects of steel producing plants. Second, when the steel firms require protection, it inflicts tariffs and trade regulations plus tax breaks or subsidies; however this can be minimized by providing Free Trade Agreements. Steel industry is highly influenced by technology and fuel prices. Technology has not only improved the quality of steel products but also the continuously growing fuel prices force the steel producing companies to figure out and implement new, innovative, and cost-effective technology and practices. During the past few years, the mergers and acquisitions have not only enhanced the growth of steel industry but also made the industry more cost competitive where competition is primarily based on prices. Recycling of steel and scrap material is another critical driving force which plays an ...
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