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A Profile of the Steel Industry by Peter Warrian

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Chapter 8

Outside Market Forces

Steel is an intermediate product. It is sold to people who make other things with it. Therefore, the nature and dynamics of steel-consuming industries are critical to understanding key drivers of steel companies and the industry as a whole. These outside market forces are unusually important for the directions and dynamics within steel, perhaps more so than if steel was a standalone industry.

For almost a 100 years, “the” key customer for steel has been the automotive industry. The auto–steel connection is so deeply embedded that it is fair to say that we would not have the auto or steel industry in the form that we have them, one without the other. For this reason, the chapter begins with a summary of some of ...

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