Tuesday, July 22, 2014

Armco Metals Holdings, Inc. (AMCO) Unfazed by Lull in Global Steel Demand

Armco Metals is a 10-year old company operating through five subsidiaries that position the company as a leading player in the sourcing, importing, processing and distribution of quality recycled scrap steel and metal and non-ferrous metal ore in China. Aligned with government initiatives to develop sustainable and environmentally responsible steel, Armco Metals aims to become the largest recycled scrap steel provider in China.

Industry reports show that China is on track to set a record in steel production despite an expected global lag in demand. The World Steel Association (WSA) projects global demand to rise 3.1% in 2014, down from growth of 3.6% last year, before slightly increasing to 3.3% growth in 2015. Armco is positioned to ride-out the lull by focusing specifically on the scrap steel niche, benefitting from government pushes to increase recycled steel consumption to 20% by 2015 as well as the increasing steel demand from developed countries such as the U.S. and Europe, as forecast by the WSA.

In a recent company announcement, Kexuan Yao, chairman and CEO of Armco, referenced the current steel landscape and the company’s strategy to take advantage of the situation, saying “We continue to see progress at our Renewable Metals subsidiary as we work to position our Company for the future. Our efforts have resulted in this important inclusion in the list of approved operators that we believe will pay big dividends down the road as the Government looks to increase industrial efficiency while reducing pollution. China’s scrap industry has been slow to develop due to many producers opting to use less costly and more pollutive production methods. As the government implements these new initiatives, we see steel producers moving to models that more closely resemble that of the U.S. and Europe which should lead to significant need for scrap steel produced by the small circle of companies who are approved by the government to operate in this industry.”

As Yao noted above, the company’s efforts in the metal ore market also support continued company growth. Ores sourced by Armco include iron ore, chrome ore, nickel ore and manganese ore. The company has established a distribution network of more than 100 small- and medium-sized steel production companies, as well as some of the government’s large state-run foundries.

Armco Metals has well-developed relationships with more than 10 international metal suppliers in ore-rich countries including Australia, India, South Korea, Brazil, and the United States, enabling the company to obtain favorable pricing for our customers, at rates unavailable through direct market importing or spot markets.

Furthermore, Armco Metals has established a proven transportation system that utilizes China’s existing infrastructure, including three deep-sea ports, railway systems, and highway systems, to improve the time, costs and distance capabilities necessary to ore distribution.

For more information, visit www.armcometals.com

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