Tag Archives: Steel Prices

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.

Steel Industry

Steel Industry 2

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.