Invention Of Stainless Steel in Neoclassical Era

Introduction

STAINLESS-STEEL is a remarkable achievement of modern metallurgy shouldering

economic, scientific, technological, social and infrastructural development of the neoclassical
economic era, it has been described as “the crowning achievement of metallurgy” by the
prominent 20th century metallurgist Carl Zapffe [ CITATION Cob10 \l 16393 ]. A study into this
milestone unwinds the legacy of the “the miracle metal” that held an exalted longevity in the
modern era for over a century since its invention.

History

Even though the first evidence of corrosion free steel dates back to 3000 B.C. China, where
the Qing dynasty used chromium to strengthen weaponries, the first corroborative testament
to corrosion free steel was provided by Benjamin Huntsman who, in 1740, invented crucible
or cast steel, which was more uniform in composition and freer from impurities, it was the
highest quality steel available till-date and fought corrosion partly.

More efficient methods for strengthening steel were being sought out, one such being
‘galvanisation’ by Stanislas Sorel in 1836 which made the idea of rust-free iron a tangible
reality. But the life of galvanised steel in the lime light was short lived as industrial-building
required a material with high tensile strength and that stood to the vagaries of nature like salt
water and oxygen, which was discovered in a new alloy, stainless-steel.

Stainless-steel or “rustless” steel, later the euphonic “stainless-steel” was invented in 1913 by
an English metallurgist Harry Brearley[ CITATION Tho13 \l 16393 ].Brearley stumbled upon this
discovery while trying to solve the problem of erosion of the internal surfaces of gun barrels
for the British army during the First World War, it lowered maintenance and repair costs,
extended useful lives of equipment and buildings and reduced product loss from corrosion
damage.
The Global Cost of Corrosion

Corrosion was a hurdle that modern infrastructure faced. The global cost of corrosion is
estimated to be US$2.5 trillion, which is equivalent to 3.4% of the global GDP (2013)
[ CITATION Joe16 \l 1033 ]. By stainless-steel, it is estimated that savings of between 15% and
35% of the cost of corrosion could be realized; i.e., between US$375 and $875 billion
annually on a global basis [ CITATION Joe16 \l 1033 ].

Neo classical era

Stainless-steel market is built on the basic principles of neoclassical theory, i.e., production
and consumption is driven by demand and supply model, it came onto scene when the people
were in need of a remedy for corrosion with increased durability, so it didn’t take much time
for stainless-steel to reach the markets. Soon, affordable cutlery became available to the
masses in Brearley’s hometown Sheffield and saw an expansion of the city’s traditional
cutlery trade [ CITATION BBC19 \l 1033 ]. It also replaced wrought iron in the production of gun
barrels in Europe during World War I.

Applied Steel: 1920s- Present

Medical industry

The use of metals in the fabrication of orthopaedic and dental implants started early during
the 20th century, in 1926, the first surgical implants made of stainless steel were performed
[ CITATION Ber07 \l 1033 ]. Further medical apparatuses are also made of stainless-steel
because of corrosion resistance, ease of sterilisation, low life cycle costs and fire resistance,
alongside improved and widespread design guidance, and enhanced product availability so,
its presence was growing in the market.

Infrastructure, Automobiles and Machinery

Following the 1929 stock market crash, steel production slowed; however, the railroad
expanded across the country and steel cans remained popular, so the steel mills stayed open
to meet those needs. The first significant application of stainless steel in construction was the
upper facade of the Chrysler Building in New York, completed in 1930[ CITATION ler08 \l 1033
].In 1931 American construction company Budd Company built first stainless-steel aircraft
Budd BB-1 Pioneer. In the subsequent years stainless steel was used in the construction of
automobiles, buildings, aircrafts, arms and ammunition, bridges, seawalls, rail links, water
and sewage, harbours and terminals, car parks etc.

Defence And Aerospace

The annual global military expenditure of military is at 1.7 trillion USD, of which, one fifth is
spent on procuring and manufacturing arms. Steels of different grades are used in the
production of defense products due to their excellent toughness, resistance to heat and
corrosion, and high strength properties

The aviation industry contributes 4.1 percent of global GDP (3.5 trillion dollars), employing

over 11.3 million people across the globe. Stainless-steel is used to make different aircraft
components as it has great corrosion resistance capabilities, a high strength, and a high
toughness.

Manufacturing and job creation

The steel industry is active in all parts of the world, transforming iron ore into a range of
products that are sold for a total annual value of US $2.5 trillion. The industry employed
more than six million people around the world in 2017, and the “added value” of its
production processes totalled almost US $500 billion, this figure comprises the industry’s
employment costs, capital costs, and net profits, and is the standard way of allocating global
or national output (GDP) between sectors [ CITATION Dou19 \l 1033 ].

The industry has a large supply chain, for every $1 of value that is added by work within the
steel industry itself, a further $2.50 of value-added activity is supported across other sectors
of the global economy, as a result of purchases of raw materials, goods, energy, and
services[ CITATION WSA12 \l 1033 ]

Throughout its global supply chain, it supports the jobs of 13 additional people for every two
in the sector. This translates to around 40 million people working within the global supply
chain and generating more than US $1.2 trillion in value-added.

Indian Scenario

Steel production began in India by the efforts of companies like Bihar Alloys, in 1976-77
steel plants at Bhadrawati and Durgapur were established. There was a lack of availability for
stainless-steel cutlery during this period and there were no systemic imports, people brought
it back home from places like Thailand for personal use.

Post liberalisation

According to neo classical theory competition leads to an efficient allocation of resources

within an economy and forces of supply and demand create market equilibrium. So, a free
market is requisite for the ideal economy. Pre-liberalisation era witnessed less competition
and more government control, the LPG reforms by WTO made trade boundaries accessible
and India started importing stainless-steel from China and Europe.

In the 1990s stainless-steel was mainly used in cutleries but later its use expanded to other
industries. Evidently, the steel industry is important for the country because it has one of the
highest economic linkages in overall GDP.

There was a reduction in consumption and during the 2008 and 2020 economic crisis because
of reduced imports and partial closure of production.

Make in India and National Steel policy

Steel demand in India is expected to grow driven by various government-led initiatives in

affordable housing and infrastructure sector, coupled with robust growth in automotive and
capital goods segments. Make in India and National Steel policy (2017) were government
initiatives aimed expanding production and rebranding India as a strong manufacturing hub.

Stainless-steel: 5 trillion Economy

National Council of Applied Economic Research (NCAER) report has highlighted the role of
steel in Indian economy’s growth because of its multifarious applications spanning diverse
sectors of economic activity. Steel plants offer employment opportunities, especially in Tier
III cities Moreover, India’s strategic location marked by a long coastline to enable exports
and imports makes it a key player in the global steel market [ CITATION JSW17 \l 1033 ]. 

A Green Metal

Stainless steel is a green product. It is 100% recyclable, as it is not coated with any toxic
material it does not produce toxic run-off. During production, stainless steel uses scrap metal
as its primary raw material, with up to 70% of the product coming from recycled material and
even if stainless steel is not recycled and it finds its way to a landfill or disposal site, it will
have no detrimental effect to the soil or groundwater.

Increased efficiency in process technology has also decreased the energy requirement to
manufacture stainless-steel.

Conclusion

Stainless-steel is the pivot of all modern industries, its impact overlaps every economic
activity, it made many technological feats possible through its versatility as an industrial
metal. Efforts are still being put in by scientists across the world to reduce the cost and
energy in its manufacturing

Stainless-steel is an ever-evolving industry which passed through all the important economic
developments of the neo-classical era like the Great Depression, 2008 crisis and covid-19
pandemic, no study of economic history in the neoclassical era will be comprehensive
without lauding this invention.
References

Steel and Indian Economy: An Upward Curve

https://www.jsw.in/steel/steel-and-indian-economy-upward-curve

Indian Stainless-Steel Industry – Overview & Latest Updates - Keval Shah 

https://www.alphainvesco.com/blog/indian-stainless-steel-industry-overview-latest-updates/

History of Stainless Steel - www.worldstainless.org

https://www.worldstainless.org/Files/issf/non-image-
files/PDF/ISSF_History_of_Stainless_Steel.pdf

Economic and social impact of the steel industry - www.worldsteel.org

https://www.worldsteel.org/steel-by-topic/statistics/steel-industry-economic-impact.html

The History of Stainless Steel - Harold M. Cobb

A stainless-steel centenary in India – Vikram Doctor

https://economictimes.indiatimes.com/blogs/onmyplate/a-stainless-steel-centenary-in-india/

Stainless Steel and the Environment - SASSDA

https://sassda.co.za/about-stainless/stainless-steel-and-the-environment/

The Indian steel industry: Growth, challenges and digital disruption- Arnab Basu

https://www.pwc.in/assets/pdfs/consulting/technology/the-indian-steel-industry-growth-
challenges-and-digital-disruption.pdf

Assessment Of the Global Cost of Corrosion- Nace International

http://impact.nace.org/economic-impact.aspx

A Short History on The Origin and Development of Stainless Steel -Mark Newman