Why it costs less to make steel in Asia than in Europe?

Answer 1

People in Asia get paid five cents a day. Plus they have no benefits, safety regulations, or environmental laws.

Answer 2

Not only are labor costs low, but also China restricts the value of its currency, causing most items manufactured there, not just steel, to be cheaper. Add onto this the general lack of environmental regulations (not to mention health and safety regulations), and manufacturing in Asia is considerably cheaper.

Answer 3

There's loads of reasons for this. Number one, labour costs are much much lower. Secondly. raw materials are often cheaper in these countries partly due to labour costs but also terrific exchange rates which means its cheaper to import materials to china than it is say for example england. Other things such as gas prices and energy prices are much lower in China. Think of it this way. A company has $100 to spend on steel. Now

Company A has a workforce which for every tonne of steel the company pays $20. The chepeast cost of the iron ore is from say Italy which costs $15 a tonne. Energy prices to melt the iron is $10. Total cost is now $45. For profit they sell at $55 tonne. So you can buy just under 2 tonnes.

Company B has a workforce which costs $5 per tonne. The iron ore is from china at a cost of $3 a tonne. Energy is dirt cheap $5 tonne. Extra cost of shipping $10. Total cost $23. For profit (and they don't have the same margins) is $30. Now you can buy over 3 tonnes.

Answer 4

Labor costs in Asia are very low compared to Europe

Answer 5

They have literally no controls as far as handling of the toxic wastes in the manufacturing process and no EPA regulations to have to deal with. The bulk of the worlds metals of this sort have been made there for decades. Their labor force is plentiful and low paid by comparison. No unions to worry with and plentiful natural resources (for now).

Answer 6

Because Asian laborers, work only with a pound of rice every day.
In Europe laborers work for payment in Euros.