Seven tips to consider when buying discount steel.

This article offers general advise and this article is for first time buyers.

If you purchase surplus steel frequently, you will be familiar with our "buying discount steel suggestions".

This article provides suggestion. We are not responsible for your steel buying outcome. Before buying steel from other vendors, please investigate your buying objectives

We believe in sharing our knowledge with our clients. If you have any questions, please email us at admin@globalsurplussteel.com

There are three sources of discount steel

1. Steel Mills - For surplus steel companies, steel mills are the best source for buying used steel. They sell quality unused steel for discount pricing.
2. Manufacturing Shops - Manufacturing shops usually sell their excess supply to surplus steel companies. It's often sold in smaller quantities.
3. Liquidators - In many cases, liquidators sell a mix of quality discount steel and scrap steel to surplus steel companies. They often sell in lots.

PRIME STEEL - STEEL MILLS

Prime steel is steel that is purchased from wholesalers and steel mills. Prime steel is high quality steel with minimal defects, with almost no machining done, and no mid-welds. This steel is the highest quality surplus steel.

STEEL FROM MANUFACTURING AND FABRICATING SHOPS

Although prime surplus steel is usually purchased from steel mills, manufacturing shops and fabricating shops are a great source for unused steel. Manufacturing shops and fabricating shops sell their quality steel to surplus steel dealers and their scrap steel to scrap dealers. One may obtain a better price and buy steel that has the same quality of steel purchased from the steel mill.

STEEL PREOWNED FROM LIQUIDATORS

As mention above, inquire about the source of steel. If the seller has purchases steel from a liquidator, then the seller may be willing to sell the steel at a lower market value. Surplus steel sellers that sell steel at a discount are in a price negotiating business.

CERTIFICATE OF OWNERSHIP OR MILL CERTS

Steel sellers, if they own steel certification, will provide source documentation with your request. Surplus companies who buy from steel mills are buying excess quality steel that will come with a steel certificates. Also, steel certificates communicate the country of origin. Local steel is higher quality then foreign steel. Having knowledge of the source of the steel, will allow the buyer to lock in the correct price for their surplus steel.

SURPLUS STEEL IS AN IVNENTORY BASED BUSINESS

The surplus steel business is an inventory based business. If the buyer decides to purchase popular steel with non popular steel (steel that has been sitting in the inventory for months or years), then the buyer may negotiate a better deal. Packaging popular steel with non popular steel is an opportunity for both seller and buyer.

DEVELOP A RELATIONSHIP WITH THE SELLER

Prime steel is very popular and it unloads quickly. When vendors can purchase popular steel for a half the price, they don't hesitate, therefore popular steel is sold fast. When quality steel arrives, the seller will contact their best customers first. Surplus steel buying is a relationship business. Developing a relationship with the seller is highly important.

STEEL AND MARKET FLUCTUATIONS

Similar to other business, there is a an association with supply and demand. When business is slow inventories rise and prices come down. When business is booming, inventories deplete and prices rise.

It's important to track the changes of your business climate. Buy steel before the trend for steel demand increases.