Understanding Surplus Steel And Its Benefits

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If you are in the business of creating projects out of steel, then you may be constantly looking for reasonably priced steel supplies. And, while different suppliers will offer different grades of steel and varying prices, others will offer what is called surplus steel. If you want to know what this is, keep reading. 

What Is Surplus Steel?

Surplus steel is basically what it sounds like. The steel is a surplus product that suppliers have on hand after filling orders for other clients. The steel is most often an excess from construction projects where too much steel was ordered in advance in case of an increased need. The steel is then purchased by steel suppliers at a discount and it is offered to clients.

Some steel suppliers will have their own surplus, and others will purchase the metal from a wide variety of different businesses. Businesses may be local or far away and sometimes the steel is purchased and shipped from overseas.

Surplus steel is often sold to steel manufacturers because construction companies will often not want to store the steel for long periods of time. This increases the business's costs and the steel will reduce in value the longer it is stored. Basically, selling the surplus allows the construction business to recoup some of its supply costs, and the steel business will get a discount.

What Are The Benefits Of Buying Surplus Steel?

The most obvious benefit of buying the steel is the cost reduction and while you may only save a small percentage on your steel, the costs savings can increase if your purchase in bulk.

Also, even though the steel is a surplus product, it is the same quality as new steel in most cases. You may see a few more blemishes than new steel with a bit more corrosion, but the steel will retain its strength and usability. This makes it a great choice for construction where the steel is used as a foundation instead of the exposed finished product. 

Another advantage of the steel is the fact that it is beneficial to the environment. It requires a great deal of energy to create a piece of high-quality steel. Mining of the ore requires a great deal of energy and so does the processing and finishing the metal. You can avoid this waste of energy by opting for the surplus steel product instead. 

If you want to know more about steel and whether or not surplus steel is best for your project, speak with a steel manufacturer.