Learn The Value Of Steel & Its Trading Prospects In 2020

Why is Steel Valuable? Steel is one of the most important metals used worldwide in the construction and engineering industries. It is an alloy made up mostly of iron and containing smaller amounts of carbon, manganese, silicon, phosphorus, sulfur and oxygen. Its relatively low cost and strong physical properties make steel a popular choice for fabricating a wide variety of items. Consumer durables such as refrigerators and washing machines use steel, as do items ranging from cargo ships to buildings to surgical equipment. How Can I Invest or Trade in Steel? Steel speculators have several ways to gain exposure in the commodity: Steel CFDs One way to trade in steel is through the use of a Contract for Difference (CFD) derivative instrument. CFDs allow traders to speculate on the price of steel production or iron ore mining company shares. The value of a CFD is the difference between the price of the shares at the time of purchase and the current price. Many regulated brokers offer CFDs on steel production companies and related commodities, however availability depends greatly on your location due to financial regulations. If you are looking to trade steel, iron ore and other commodities, here’s a list of regulated options available in India to consider.

Why is Steel Valuable? Steel is one of the most important metals used worldwide in the construction and engineering industries. It is an alloy made up mostly of iron and containing smaller amounts of carbon, manganese, silicon, phosphorus, sulfur and oxygen. Its relatively low cost and strong physical properties make steel a popular choice for fabricating a wide variety of items. Consumer durables such as refrigerators and washing machines use steel, as do items ranging from cargo ships to buildings to surgical equipment. How Can I Invest or Trade in Steel? Steel speculators have several ways to gain exposure in the commodity: Steel CFDs One way to trade in steel is through the use of a Contract for Difference (CFD) derivative instrument. CFDs allow traders to speculate on the price of steel production or iron ore mining company shares. The value of a CFD is the difference between the price of the shares at the time of purchase and the current price. Many regulated brokers offer CFDs on steel production companies and related commodities, however availability depends greatly on your location due to financial regulations. If you are looking to trade steel, iron ore and other commodities, here’s a list of regulated options available in India to consider.

How is Steel Produced? Steel production takes place in furnaces using three different methods:  Blast Furnace – Basic Oxygen Furnace (BF – BOF): This method uses iron ore, coal, and some recycled steel. Iron ores are reduced to iron and then converted to steel in blast furnaces. Steelmakers cast and roll the steel and deliver it as coils, plates, sections or bars.  The BF – BOF method accounts for about 75% of global steel production. Electric Arc Furnace (EAF): This method uses mostly recycled steel and electricity, but sometimes other sources of metallic iron. Electricity melts recycled steel in EAFs, which account for about 25% of global steel production. Open Hearth Furnace (OHF): This energy-intensive and environmentally unfriendly method accounts for less than 0.5% of global steel production. Steel Making Flowline via Steel.org Global steel production exceeds 1,600 million metric tons annually. Production is global, but it has shifted dramatically over the past decades from Western countries to China. Chinese producers now account for almost half of the global supply of steel. The largest producing countries include: