The maturity of the U.S. economy has forced steel out of the limelight, but emerging economies continue to appreciate the importance of this essential material resource for GDP growth. One of the features of the growth story of China is its amazing advance to the vanguard of world steel production. The country is witness too much jockeying for leads by domestic manufacturers of all sizes. That is why the Chinese steel industry places so much collective importance on trade with the United States. The Washington administration perceives this as a threat to indigenous interests, and has placed crippling tariff barriers in the way of steel imports from China. However, domestic demand for steel in China is large and growing, so manufacturers have plenty of room to expand.

This small-capital steel manufacturer, the stock of which is available for retail trade in the United States, has additional safeguards for its business growth and profits. It focuses on specialized products for agricultural implements, tractors, and for the oil and gas industry as well. It also has a significant business in steel supplies for shipping containers. The company is therefore able to rise above the competitive pressures of selling entirely generic products.

The Most Recent Quarter has seen very impressive business results. Quarterly net revenue, which was less than $0.5 million a year ago, has climbed to over $2 million this time. Some of this progress is due to inorganic and derivative gains, but the management has shown definite capabilities. The enhanced cash inflow comes at an appropriate juncture in any event.

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