It will be no secret to you that we are living in complex times from many points of view. Fuel, food and, of course, raw materials have been affected. To put it simply: we are in a crisis situation. In this line, the steel It has become a highly in-demand but little-supplied material. All this, logically, causes changes in your market.

Let's deal with the issue in depth. This way, you will be able to know what circumstances are causing the crisis and how all this affects the issue that interests us. In the same way, we will try to show you whether or not there are reasons to be optimistic.

What current circumstances affect the steel sector?

economic and financial crisis, how it affects steel - Ferros Texar Blog

Why currently purchase, for example,  galvanized steels It is so difficult? The answer is clear: because we are in crisis. Now, simply stating that we are living in times of crisis is very incomplete. To have a broad view of the issue, a more complex and in-depth analysis. For this reason, we believe it is relevant to show you, even briefly, the key points. We have chosen to list the fundamental factors for the creation of the crisis.

The contemporary world situation can only be understood through the following:

  • The raw materials crisis: Since the times of the pandemic, the raw materials industry has slowed down. This has led to a shortage and, therefore, a lack of sufficient supply to meet demand.
  • The rise in energy prices: Both fuel, gas and electricity have increased in price. Many factors explain it. The main one is the economic rebound after covid-19. Companies and individuals have demanded a lot of energy. This has caused shortages.
  • The invasion of Ukraine: Russia is one of the world's leading exporters of raw materials and fossil fuels. Its current war situation necessarily affects the world market. Added to all the factors that we explain are the international blockades and sanctions that this country is suffering. All of this contributes to higher prices and scarcity.
  • Transportation problems: For decades, the transportation sector has not been so collapsed. The aforementioned increases in demand require constant movement of trucks, ships and planes. This gives rise to bottlenecks that make it difficult to carry out smooth logistics management.

How do the changes materialize?

Every crisis has its consequences. Obviously, we are not experiencing an exception. In fact, before we have already shown you some key points.

If we had to summarize the entire crisis for you in two words, we would use increase in price and scarcity. If you consult the Consumer Price Index (CPI), it can be seen that this has increased considerably. Furthermore, if a sector consultation is carried out regarding raw materials, it will be seen that the increase is even greater.

This has brought about a consequence that you have probably already noticed: the steel price, in general, has suffered a clear increase. Now, this is not, in itself, the biggest problem. It's true that having to pay higher prices for things is a drawback. However, it is even more undesirable not to have access to such things. This is where the issue of scarcity comes into play.

There are many suppliers who have been left without sufficient supplies. This results in customers cannot acquire everything they need from suppliers. Production processes slow down and income stops. Therefore, industrial production and sales of products made from materials such as metals are paralyzed.

Are there reasons to be optimistic about iron and steel?

Until now we have shown you the most pessimistic outlook regarding the production and sale of iron and Steel. Does this mean that there is no possibility of maintaining a positive attitude? Nothing is further from reality.

Although we are in crisis, this can be overcome. Luckily, there are plenty legislation for the steel sector that provides the sector with tools to overcome the problem. Although we are experiencing difficult times, they do not last forever nor do they have to cause excessively serious consequences.

Most likely, in general, the results of a large part of the companies do not be as good this year as expected. Income may not decrease, but expenses will increase. Problems such as inflation and rising prices are the root cause.

The truly serious thing occurs in cases where not only expenses increase, but income also decreases. This is a consequence of the aforementioned shortage.

The importance of having suppliers with stock permanent iron and steel

solutions in times of crisis - Ferros Texar Blog

From what we have explained you can draw a clear conclusion: it is better to pay high prices than not to be able to buy. Therefore, it is now extraordinarily important to have suppliers whose warehouses are strong. Here comes into play stock permanent Ferros Texar.

We have a sufficient quantity of metallic raw materials to meet the demands of our clients. This makes None of those who purchase their steel or iron from us have a shortage problem at all.. The client will always be able to continue with their production processes without any kind of problem, so they will be able to overcome the crisis without reducing income.

In conclusion, you have already been able to see how the steel is currently affected by the crisis we are experiencing. In any case, you have seen that there are still reasons to be optimistic. Don't forget, at the end of the day, that you have your back covered thanks to suppliers like us. At Ferros Texar we put at your disposal a stock permanent and continued. Throughout history, industries have experienced crises. After every period of uncertainty and shortages, comes a stage of growth and prosperity. Things will get better. To get ahead, it is better to rely on the most reliable suppliers.