The beginnings of the modern steel industry

The history of the steel industry is very rich. It has shown its remarkable technological and entrepreneurial dynamism, enjoying a significant economic, political and strategic importance. Western nations no longer dominate the industry due to changing costs and the spread of technology. Also favorable government policies for developing countries with high growth.

The modern steel industry is inseparable from the second Industrial Revolution of the 19th century. This industry evolved from a simple production in small furnaces to new technologies, such as the Bessemer process (developed in England in 1854) which contributed to the mass production of steel. Thus the steel industry spread throughout Europe and the United States of America.

Increasing steel production

The scale of production increased dramatically in the 20th century with large blast furnaces to melt iron ore in open hearth furnaces. Being followed by the larger and more efficient oxygen-based furnaces (BOF) (developed in Austria in 1954).

In the United States, in 1980, Kenneth Iverson adopted German innovations in electric arc furnace (EAF) technology. These mini-rolling mills increased its flexibility and competitiveness in relation to the producers who used blast furnaces.

The geographical location of the steel mills was dictated by the availability of coal and iron ore.

The increase in cast iron production was significant. In Great Britain it varied from 1.3 million tons in 1840 to 6.7 million tons in 1870. And 10.4 million tons in 1913. In the USA the growth was faster from 0.32 million tons in 1870 to 1 .74 million in 1870 and 31.5 million tons in 1913. Germany varied from 0.19 million tons in 1850 to 1.56 in 1871 and 19.3 in 1913. And in France, Belgium, Austria-Hungary and Russia, combined , varied from 2.2 million tons in 1870 to 14.1 million tons in 1913.

Before 1860, steel was an expensive product. Being made in small quantities and used mainly for swords, tools and cutlery. And all large metal structures were made of wrought or cast iron.  Steel production was concentrated in Sheffield, Great Britain, which supplied the American and European markets.

The new technologies in the history of the steel industry

The reconstruction of Western Europe and Japan, as well as the rapid adoption of new technologies for the production of steel throughout the world, eroded the competitiveness of American industry.

Some of the most important steel companies in Western Europe, such as British Steel and French Usinor-Sacilor, were state-owned. The Steel Authority in India, Siderurgia Brasileira in Brazil, POSCO in South Korea were all owned by state.

The former Soviet Union and the countries of the Eastern Communist bloc and China, although outside the capitalist world economy, until the end of the 20th century. They also relied on the national development industry.

The American industry was caught off guard by the new rolling mills, often with newer technologies. Since the late 1950s, the United States has been a net importer of steel. By 1987, Japan and South Korea supplied 28% of US imports, mostly high-value flat products, while Western Europe, burdened by excess capacity, had a similar share to the US. In the mid-2000s, imports constituted 21 percent of the US market.