Steel Prices on the rise

UPDATE:

Ok so a little over 11 years ago I wrote the first part of this article and at the time we were at war, oil was at all time highs and steel rebar was through the roof with prices as high as $1203 USD per Metric Ton on the international market, crazy right lets fast forward to 2019 the prices this year have actually taken a small hit but is still much higher then in the early 2000's but much lower then the all time high or just a little over a year ago in August 2018, with trade wars in the air who knows what 2020 will bring. 

Steel Prices on the rise 1
foto credit: shutterstock

Its 2008 and oil prices are at there highest in history, the world is finally realizing after years of prices rising that oil is limited and that we need to figure out an alternative to oil. Well the government has been tooting corn and soy beans as alternative crops to make bio diesel. Mean while that is not cost effective all it is doing is rising the price of food around the world.  personally in the research I have done the government needs to forget corn and soy beans as a bio fuel alternative and spend all there efforts on Algae. Ok now that I said that lets get back to the point every where you look these days things are looking bad that is for the average Joe.

Steel is no different in fact it has probably risen more in price then most everything else in the last 6 months Certain steel products have more then doubled, that means worse news for the bank account and higher prices for things like Autos.  Normally I wouldn’t be so opinionated but it is something that needs to be said, so I will put in my 2 cents again and say maybe the US should pull out of a war they should never have gotten into in the first place and start spending all that lost wasted money on renewable energies. With all that has been spent on the war to date the US could have been created enough renewable energies that the US would literally need no more oil imports. This alone would bring prices down in the US and would have kept the US in a boom economy for many years to come.  Imagine lower cost at the pumps, lower electricity cost and all the money staying in the country and not being spent over sea’s would be enough to lower cost world wide for gas, steel, food , transportation and much more.  Just my 2 cents don’t listen to me I am just writing.

The Independent

This 209 meter (683 ft) high hunk of steel called The Independent is as of this posting on December 28th 2019 the tallest building in Austin, Texas. This residential building was added to Austin's skyline in 2019 beating the Austonian by 1 floor and 1 meter approximately which has been open since 2010 .

The Independent 2
Credits: Austin Monthly Magazine

The Independent broke ground on January 2016 and the structural material that holds up this beast is Steel and Concrete, with a modernism architectural style. The Independent is located on West Avenue with a zip code of 78703 and has a total of 58 floors above ground with a total of 370 apartments with a total area of 950,001 square feet, and has been nick named the Jenga Tower or Tetris Tower due to its shape.

Many residents of Austin don't actually appreciate the design at the top of The Independent but it actually has purpose it is a water tank used to dampen the sway of the building which is quite ingenious

Brooklyn steel

This is not the typical steel building or structure that we would normally post about on this site there is nothing extraordinary or amazing about the Brooklyn Steel building it's self it is a regular looking industrial building that is being used as a music venue. The thing that is interesting about Brooklyn Steel is the building in which it was built.

Brooklyn Steel was actually built inside of an old steel plant, making the name of the music venue a cleaver play on words and much of the steel used to build the music venue was repurposed from the original steel mill.

Operated by The Bowery Presents it is another Williamsburg cultural beacon named by Rolling Stone Magazine one of the ten best live music venues in America, with a capacity of 1,800 and being compared to Manhattan's Terminal 5 also operated by the same company. Brooklyn Steel boast a main floor 40 restrooms a balcony and 3 bars.

The building on the corner of Frost Street and Debevoise Avenue, was opened on April 2017 with plans on hosting around 140 shows per month right out of the gate, for Brooklyn Steel events please visit there site, hopefully you liked this story even though it was a little off our original steel buildings and steel structure stories.

ArcelorMittal to buyout Bayou Steel Corp.

The Luxembourg steelmaker ArcelorMittal said Monday it will buy Bayou Steel Corp.

One of ArcelorMittal Steel mill’s below

ArcelorMittal Steel Mill

      Bayou Steel Corp. operates a minimill on the Mississippi River in LaPlace, and has a rolling mill in Harriman, Tenn.  They also run an automobile shredder at the LaPlace plant, barge wrecking and scrap yards in LaPlace, and a plant in Harvey. they employ 630 people and in 2007 generated revenue of $331 million on 510,000 tons of finished product.
  

      ArcelorMittal North America CEO Jos Jacque, said  "We are excited by the opportunity that this acquisition represents as it further strengthens … our product portfolio, customer base and distribution network in North America."  For those that don’t know already ArcelorMittal is the worlds largest steel company and has been expanding over the last couple years and seems like they have no plans to slow down in the near future.  ArcelorMittal says it will invest 25 billion in the India steel market and is interested in expanding there operations in china as well.  On another note as long as the dollar is weak we will probably see more buyouts from foreign steel companies, because exports from the nation’s mills are more competitive.

      Bayou Steel went through bankruptcy several years ago and emerged from it in 2004. In 2006, after several months of seeking takeover bids, Bayou Steel agreed to be acquired by Black Diamond Capital Management LLC.

The purchase by ArcelorMittal is subject to regulatory approval.

Steel Industry

Steel Industry 3

update: March 18th 2020 with the coronavirus scaring the breath out of markets around the world the steel industry like many others has taken a Hit in the US the price of steel is down around 44% since early Feb. 2020 as people around the globe are gearing for a long slow down due to the increse in Coronavirus cases reported.

What is your opinion on this?  Will steel prices make a swift recovery?  Will they go even lower remember in the 2008 Crisis the prices droped over 80% then in less then 2 years jumped in a great comeback by over 180%.

At the rate of growth in steel production around the world mainly in china and india we could see 2,000,000 MMT of steel produced in 2008.  The Steel industry is huge and plays a crucial role in the infrastructure and overall economic development of a country, the Steel industry is often considered to be an indicator of economic progress.

The Boom in China and India’s economy has caused a mass increase in steel demand over the last few years and prices have risen along with the rise in the booming steel market.  The steel industry is vital to national security and economic competitiveness.  Railroads, automobiles, skyscrapers, bridges, appliances and more are all built and produced with Steel.

With the increase in demand and the rising prices of fuel and electricity we can only expect the cost of steel to keep going up even with slower economies around the world since steels growth is higher in 3rd world countries it is not as affected to  a slow down in a few economies there is still plenty of demand in emerging economies.

The steel industry is one of the greener industry’s with a recycling rate of 65-70% it is the most recycled material on the planet.  did you know that to make the framing for a 3000 square-foot home you would need about 9 recycled cars for the same with wood you would need to chop down approximately 60-75 trees.  As prices of steel rise I suspect recycling levels will rise as well.