Steel Industry is an important raw material industry of the national economy. It is also the foundation of the manufacturing industry, which plays a significant role in economic and social development. In the past few years, global steel overcapacity problem was outstanding and serious. The price of steel product was in low price volatility for a long time. Since it is sorely conditioned by resources, energy and environment load, a lot of steel companies are heavily indebted and facing operating difficulties.
US steel industry
Before the 1970s, it was an important pillar of the U.S. economy. It has evolved into an important fundamental industry, which has been protected by the U.S. government since the 1970s. Therefore, the steel industry is known as the “barometer” of the U.S. economy. The United States has more beneficial resource conditions for the development of its steel industry, such as abundant iron ore resources, developed mining industry and adequate supply of raw material. Developed railway and water system provide convenient transportation for the development of the steel industry. In 1910, the United State had 560,000 kilometers of railway mileage, which is the longest in the world. The construction of the railway is closely related to the development of the steel industry. On the one hand, it stimulates the development of the steel industry because railway construction needs to consume a lot of steel. On the other hand, improving the railway network provides convenient transportation for the delivery of raw material, fuel and products. At the same time, the Great Lakes region of the United States water and shipping transportation plays a great role in the development of the steel industry. The capitalism of the United States was much later than Britain and France. it made full use of advanced technology from foreign countries in the early stage of its industrialization, such as coking, hot air furnace, open-hearth furnace, and other technologies introduced from Britain. After that, they tried to make improvement and created a lot of new processes and new equipment. In the process of industrialization, the US government encourages the development of large-scale manufacturing enterprises. Mergers and reorganizations between enterprises happen from time to time. If it is necessary for production, large companies with strength and resources will not hesitate to purchase the companies they need. Objectively speaking, this kind of system environment helps steel enterprises to use the advantages of scale economy of steel industry for developing integrated steel enterprises.