What's new
What's new

Steel Prices: How we got here and what could happen

  • Thread starter Ox
  • Start date
  • Replies 83
  • Views 11,159

lucky7

Titanium
Joined
Sep 6, 2008
Location
Canada
Holy crap, Mcgyver’s graph is exponential..

Pity the steel service centers that have to buy at current prices and sell in six months to a year. Had to buy a small amount this week and the old guy at the place I use is worried. Hope he’s still around next year.

L7
 
O

otrlt

Guest
High Steel prices are good for manufacturing, they add their "mark-up" on every sale.

times are very good, but if you can't make money in todays environment, you should not be in business.
 

Ox

Diamond
Joined
Aug 27, 2002
Location
West Unity, Ohio
Holy crap, Mcgyver’s graph is exponential..

Pity the steel service centers that have to buy at current prices and sell in six months to a year. Had to buy a small amount this week and the old guy at the place I use is worried. Hope he’s still around next year.

L7


Materials that you buy today, are sold at today's replacement costs, just like gasoline.


--------------------------

Think Snow Eh!
Ox
 

Big B

Diamond
Joined
Jun 26, 2009
Location
Michigan, USA
Why would you pretend to summarize the article, and then make up your own figures? Holy shit - people like you suck.

Because she is a liar like her cult leader trump. No lie is too big for the trump cult members. And don't expect any reply to your post. They just lie and move on.
 

idacal

Hot Rolled
Joined
Aug 9, 2011
Location
new plymouth id
Its like hot potato right now with steel pipe dont want to be stuck with thousands of feet in the yard at 20 plus a foot. Im guessing thats the suppliers problems to But this is the first time it just hasnt been available in 22 years. I have a lot of quotes out at old prices that i usually try to honor but im just not going to able to anymore if they want the old quote they can wait till materials drop.
 

Ox

Diamond
Joined
Aug 27, 2002
Location
West Unity, Ohio
Because she is a liar like her cult leader trump. No lie is too big for the trump cult members. And don't expect any reply to your post. They just lie and move on.


Ok fellers, I asked to keep things civil.

B, you just can't help yourself can you?

Either keep it civil, or I will give you a vacation for a few days while we have a thread in peace.


-----------

Think Snow Eh!
Ox
 

BillE

Hot Rolled
Joined
Dec 6, 2010
Location
Sydney Au
Ore price here has near tripled in a year, not too surprised end product is up! Even had scrap metal merchants calling by for the last few months offering to leave skips, when you couldn't give it away previously.
 

standardparts

Diamond
Joined
Mar 26, 2019
Ore price here has near tripled in a year, not too surprised end product is up! Even had scrap metal merchants calling by for the last few months offering to leave skips, when you couldn't give it away previously.

"Scrap metal..couldn't give away previously"

Local yard paying $290.a ton for washer/dryers, steel siding, and such. I see my landlord just dumped a multi- spindle, hardinge, and other machines that had been left by a previous tenant.

Wonder what the lag is from scrap price paid to pricing on finished stock?

My scrapper friend says the low hanging fruit/ easy picking scrap is getting pretty thin.
 

Trueturning

Diamond
Joined
Jul 2, 2019
Even though tariffs have been used for some time here the intensity of the debate over them will rise and fall depending on the times. As with the resc3nt tariffs the past five years especially in regard to China which includes the conflict of trade practices and other issues which are in focus.

“ The lesson learned here is that steel tariffs are driven by politics and that economics only matters to the extent it is impacting politics.” - from the OP ‘s article.

That politics often are common in regard to this issue is clear. When politics are in a phase of Extreme disorder and can be described as in a state if irrational schizophrenia then things become havoc. Like now. Clear heads still prevail in my opinion. Of course my opinion can be labeled therefore as any variations of descriptions that are thought up. Good-bad-or indifferent , take your pick. It don’t hurt my feeling.:)

Oh yes and definitely this is the case. Despite this being so one need only have the opinion for example that for example;

“Tariffs are always bad because it raises the cost of goods to consumers”.

Though Tariffs are levied and it does effect the price raising it still it is used and for various reasons. To conclude that because indeed it raises prices is as far as some people ever get. The larger picture takes into account other factors considered which have a cost impact in another place if not implemented.

It seems to be a slam dunk belief that it only increases costs to consumers. Obviously it will have to increase costs for sure and yet there are valid considerations to acknowledge where they will have the desired positive effect.

Consider please this article.

Article;

The Truth About Tariffs | Council on Foreign Relations

There are times when these are levied that there likely are bonifide reasons for having them. The reasons are often needlessly politicized as they are today.
 

standardparts

Diamond
Joined
Mar 26, 2019
Even though tariffs have been used for some time here the intensity of the debate over them will rise and fall depending on the times. As with the resc3nt tariffs the past five years especially in regard to China which includes the conflict of trade practices and other issues which are in focus.

“ The lesson learned here is that steel tariffs are driven by politics and that economics only matters to the extent it is impacting politics.” - from the OP ‘s article.

That politics often are common in regard to this issue is clear. When politics are in a phase of Extreme disorder and can be described as in a state if irrational schizophrenia then things become havoc. Like now. Clear heads still prevail in my opinion. Of course my opinion can be labeled therefore as any variations of descriptions that are thought up. Good-bad-or indifferent , take your pick. It don’t hurt my feeling.:)

Oh yes and definitely this is the case. Despite this being so one need only have the opinion for example that for example;

“Tariffs are always bad because it raises the cost of goods to consumers”.

Though Tariffs are levied and it does effect the price raising it still it is used and for various reasons. To conclude that because indeed it raises prices is as far as some people ever get. The larger picture takes into account other factors considered which have a cost impact in another place if not implemented.

It seems to be a slam dunk belief that it only increases costs to consumers. Obviously it will have to increase costs for sure and yet there are valid considerations to acknowledge where they will have the desired positive effect.

Consider please this article.

Article;

The Truth About Tariffs | Council on Foreign Relations

There are times when these are levied that there likely are bonifide reasons for having them. The reasons are often needlessly politicized as they are today.

Supposedly the U.S. and the EU will meet later this year with the goal if ending tariffs.

Hopefully they will be successful.
 

Trueturning

Diamond
Joined
Jul 2, 2019
Supposedly the U.S. and the EU will meet later this year with the goal if ending tariffs.

Hopefully they will be successful.

Yes. It is rather fair to be fair and so there should be a fair arrangement in the interest of our United States.

Did I also say fair?

I see not much coming together as far as trade issues with China are concerned. The tariffs likely will continue. Still there should be give or take here.

So far it seems to not be happening very effectively. We will see.
 

chip_maker

Stainless
Joined
Jan 14, 2006
Location
Moira, NY USA
We historically have made an average of about 70% of the steel we use for the last 40 years or so.
There are several new, state of the art mills in the USA that were built in the last ten or 15 years.
Cleveland Cliffs, a US company, is currently investing billions building the next generation of US steel mills, which will take US ore, and convert it to iron pellets, and make it usable by mini-mills with EAF, so they are not wholely scrap melting mills.

One of the best stocks I have ever purchased.
 

cnctoolcat

Diamond
Joined
Sep 18, 2006
Location
Abingdon, VA
Lumber and steel are victims of overreaction and speculation.

Supplies are down throughout the supply chain, as the industries were nearly shut-down during much of 2020.

The economy is now making the typical comeback after a slow-down, and combined with the artificial boost of government stimulus checks, shortages in key industries were bound to happen.

But, just like with lumber futures, steel prices will come back down to more “normal” levels over the next 6 months to a year.

Why?

Because the US and world economies are doing OK, but they are not actually booming. And it won’t take long for suppliers of everything to get ramped back up, and fulfill the demand pipeline.

Once lumber and steel start free-falling in price, that could be as interesting as the recent climbs.

High steel prices suck for my shop because the products we make are sold at somewhat fixed prices, due to stiff competition and expectations of demanding customers.

Our main product starts as a 60-pound chunk of 2-3/8” round 4140HT, so every 10 cents per pound adds $6 of cost to each part.

I’ve told all the customers we will hold prices as long as we can, but if steel prices don’t come back down to earth soon, we will be forced to increase prices.

We have been able to negotiate with multiple steel service centers, and place blanket orders, to save a few pennies per pound.

Never a dull moment in a small manufacturing business...

ToolCat
 

standardparts

Diamond
Joined
Mar 26, 2019
@Ries..."Cleveland Cliffs" your reference sent me down a rabbit hole for a couple of hours. Massive company. "Hibbing Taconite"----was surprised to see that is still a thing. A BIG thing.
 








 
Top