The demand of steel is a good economic indicator of a country building infrastructure, but a high volume market with ever increasing prices due mostly to developing countries, can and will slow demand on manufacturing. Steel is the foundation for building development; in the pilings, foundations, and is heavily used in transportation and general manufacturing.
During post WWII when Japan was restructuring and the United States was growing, we saw staggering rates of production and consumption. According to the chart, India (a known developing country) and China are now starting to produce and use steel at alarming rates. China's rate of production and usage relative to the great growth period of the United States and Japan is even greater, driving demand and the market price for steel up. The notion of obtaining steel at a price is likely never going to happen, which will have a direct impact on manufacturers, even in China.
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