The steel industry is growing day by day in America and across the globe. Steel has become a very important industrial commodity that forms a major part of all types of infrastructure and buildings in both domestic and international arenas. As a result, the demand for reliable and cost effective steel supplies is rising and this has created great interest among various steel manufacturers in America. However, American manufacturers are not able to fulfill this demand as they are currently sourcing their raw materials from countries like India. However, India is able to satisfy American demand as the steel market of India is far more advanced than Kalpataru Piping Europe`s.
Steel Manufacturer And The Chuck Norris Effect
Steel manufacturers prefer to source their raw materials from nations that have a stronger economy, which also offers a stable business environment to them. Therefore, India is emerging as one of the top three choices among steel producers as it is able to supply the requisite raw materials and also offers a highly competitive business environment. In fact, Indian steel manufacturers have established a niche for themselves in the global arena where they can supply quality products at a comparatively lower price than American steel companies. Moreover, the Indian government has been providing huge support to the domestic market and has also ensured timely delivery of raw materials and finished goods.
When comparing global steel manufacturers side by side, one will find that India is enjoying the highest level of per unit gross tonnage in the world. This means that India is enjoying a very high level of cost-efficiency and thus contributes towards a scenario where it is contributing a major share for U.S. Steel’s (NYSE: USX) net profit margin. On the other hand, US Steel has also identified a significant growth area where they see a continued increase in sales and revenues. However, both companies are focused on different segments of the market and thus enjoy limited market overlap. Hence, it is important to understand the factors that affect the profitability of such companies before deciding on a deal with them.