Stockholding of steel

Sep 9
10:32

2016

Innes Donaldson

Innes Donaldson

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Stockholding of steel and role this has to play in a construction business as well as other businesses.

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Steel is an important commodity in the global market economy.  It is a much sought after material and used in numerous applications.  Steel mills produce steel which can be shipped direct to customers to worldwide destinations.  So why is there such a huge role in this market for the steel stockholder?

Steel mills produce steel on demand.  They can produce steel to be shipped direct to a customer and in some cases may even retain a small stockholding themselves.  The biggest drawback with such an operation is the potentially lengthy lead times which may occur.  This is why the role of the steel stockholder is so important.

Dependent on capacity and  the type of steel being produced at the mill,Stockholding of steel Articles it is often the case that the lead times being quoted are simply too long.  Steel stockholders are a much needed outlet for customers who require steel products quickly and this arrangement is of great benefit both to the consumer and the mill itself.

Stockholding

It is a considerable advantage to the customer to be able to buy carbon steel plates from stock through a steel stockholding company.  This arrangement can dramatically cut the lead time, with the stockholder shipping the material direct to the customer's location or site.  Another benefit is the added value services that the steel stockholder can offer.  Many companies provide a profile cutting service where the plates are cut to size before dispatch and they can also provide testing of the steel to the clients requirements.  Where goods are being exported, the company will handle the entire export process including the arrangement of shipping the goods and all the associative documentation, and can also organize marine insurance if required.

Pre-Booking Tonnages

An advantage for stockholders is an ability to pre-book tonnages directly with the mill.  By pre-booking tonnages, whether for stock or project work, this speeds up the supply chain process.  So in the event of a customer requesting steel that is not currently in stock, there is a realistic chance that some more stock is already in the production chain.  Or alternatively, utilizing the pre-booked tonnage, the project order can be produced by the mill and be shipped direct in a much shorter time span.