In a dramatic attempt to corral the domestic market, the US steel industry has increased their prices and threatened shortfalls and allocation of materials. "Steel costs are exploding and availability has tightened overnight," says one of our steel venders. The current condition is the result of several factors including; inventories are low, the economy is growing and steel demand is high, recent consolidation of the US steel mills leaves 2/3 of the steel being produced by 3 mills, raw material costs and scrap prices have increased, China continues to manufacture and absorb the greatest amount of steel per year (over 200 million tons manufactured per year) and the weak US dollar makes foreign markets more attractive for foreign steel sales. This situation is another peak of the steel industry "roller coaster." Skolnik‘s first priority is to make sure that our raw material inventories are plentiful and our bookings for steel secure. We anticipate that prices may rise in 2004, but for now, the only recommendation we offer is to be generous with lead times.

January 6th, 2004 8:15 am Filed under: Uncategorized by Bill Fitzgerald