A few weeks ago, I spoke with several industry leaders about the crazy state of steel. If you’ve received the June print edition, check out Steel Prices Soar and read what our experts have to say.
New reports last week again confirmed that steel prices will not level any time soon.
According to NewsOn6.com, steel prices will continue to creep up until the end of the year, when it’s expected the American dollar will begin to rebound. The article states large steel users will pay as much as $1,200 a ton for hot-rolled steel and $1,300 for cold-rolled by July, about twice the cost in January. For smaller companies, the cost will be an additional $200 higher due to less buying power.
The article’s experts predict hot-rolled steel prices will average about $650 per ton in early ’09, and may well dip to $550 by December 2009, compared to about $825 in 2008. Of course, there are a number of unknown factors, including steel production in China and India.
Speaking of foreign countries, while the steel prices soar here in the States, some foreign governments have put a leash on the rising costs by enacting restrictions—notably through export duty—to help them reign in inflation. Some foreign steel companies, such as Tata Steel of Jamshedpur, India, have promised to hold prices through July.
In response to China’s massive earthquake, which killed thousands last week, Shuicheng Iron and Steel Group will not increase the prices of steel products in Chengdu and Chongqing areas, the two areas severely damaged by the earthquake.