Michael over at Stamping out a Living picked up on an article at Phillyburbs on the e-steel site SteelSalvor. I wrote about these people back in October last year. I have seen so many e-steel sites start up very quickly and fail just as fast, that it is refreshing to see one continuing. I think the biggest problem with e-steel is that it largely excludes the end users who need the sort of technical back up and support that only comes from having a direct relationship with the supplier. This means that it is mainly traders and steel service centres that can benefit from e-steel.
The steel component manufacturers need very specific sizes, grades and tolerances for production purposes, and whilst the internet has had a downward pressure on consumer goods, it is unlikely to have the same effect on steel prices.
What the future is for e-steel, remains to be seen, but it’s track record so far does not suggest that the internet will have the same impact in our industry as it has had in some.
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