Steel shortage could lead to more cars crushed!!!

[77Z28]

Some of you may have noticed lately an amazing increase in the cost of steel. Being an architect we began to see some strange things occur with some of our bids and those projects under construction. Lately bid prices with steel are higher than normal and those bid before the price skyrocketed are having their steel delivered much earlier than needed so suppliers can protect as much of their profit as possible. Up until late 2003 the US was the largest producer and consumer of steel in the world. Today we are surpassed by China.

As the web link will state just about anything using steel is likely to go up. Check out this quote from the article as well.

"Scrap iron is being consumed at a faster rate to support the steel industry. Approximately 30% of the steel produced is from recycled scrap iron. Prices for scrap iron have risen seven to eleven times the prices seen just one year ago. In the short term, the U.S. can expand the amount of scrap iron by utilizing automobile junkyards. The reality is that the amount of scrap iron produced will never exceed the amount of steel production."


Web Link about Steel Costs[/url]

[Vern B]

I do some business in the scrap industry selling for Caterpillar. Two years ago scrap was $ 50 a ton, today it
it is over $ 300 a ton. China has a voracious appetite for steel and it will only get worse. I was in Peoria last week and was told they are price protected for another year, after that Katie bar the door. By the way, the recession is over, a year ago most everything was 4-5 week delivery, now it's 20 weeks plus and everything is sold that's being built. And they might go out on strike next week 4/1, go figure!!!

Vern Bauer

[77Z28]

Here is web story I couldn't seem to get right:

http://www.boyken.com/pressroom/newsletterarticle.asp?NewsID=29