Structural Steel Prices

[Qshake]

All,

I'm a bit surprised that either I've missed the discussion on the impact steel prices are having on our industry or that we haven't had a discussion as of yet.

I'm interested to hear what others are experiencing. I've heard a number of things regarding the prices but recently have heard and read that the absence of "coke", a raw material, and an enormous demand in China for steel have curtailed supply and thus with demand so high the price has sky-rocketed. I've also been told that the steel industry was over-due for a correction and that prices were depressed for some time. The latter seems to imply the cost of steel may not see its pre 2004 prices again.

In the meantime, the concrete folks have seemed to caught on here in the midwest and are now charging more for this structural material - and I'm not talking about recovering rebar prices either....

Anyone else?

Regards,
Qshake

Eng-Tips Forums:Real Solutions for Real Problems Really Quick.

 

[PSlem]

ENR has had weveral articles as companies like bridge builders who bid more than a year out are being hammered. The gov't has said it won't offer relief, either. We use a lot of pipe and prices have risen over 50% with a lot of scouring to find sources. Steel fab comp[anies are now adding inflation clauses to their bids. China is using a lot more domestically and there was a coke fire that shut down our main source.

Engineering is the art of not constructing...of doing that well with one dollar what any bungler can do well with two after a fashion.

 

[ml13]

AISC has a paper from a recent conference onlnine that is a good resource:

http://www.aisc.org/Content/ContentGroups/Documents/Marketing2/SteelPricingNASCC.pdf

My steel man here in town says he hopes to see it stabilize by the end of the summer, but the truth is, they are at the mercy of the mills. The mills set the prices for the next month every third Monday,as well as announce the surcharge. The fabricators are eating it or passing it along. The owners are suspicious because they are used to seeing material prices increase gradually, not spiking like they have been (metal studs around here are going up about 20% a month, steel about 10% a month).

The paper linked above points out that the average steel framed building accounts for 10-12% of the total building cost (erected), 20-25% of which is material costs. Thus the mill costs accounts for only about 2-3% of the building costs. Even a 50% increase only increases the total building cost 1-1.5%.

 

[rmw]

China is not only using more steel as they expand their economy, they are making more of their own steel, soaking up all the scrap that our domestic mills need to make steel for the demand here. So, it is a double whammy situation.

Most modern domestic mills are "mini" mills, which are electric arc, furnaces, so in the areas of the country where Nat Gas is the primary power producing fuel, the added cost of electricity is also a factor.

rmw

 

[AJUK]

Steel has gone up around 15-20% in the UK over the past couple of months. I had a chat with a couple of steel fabricators who are anticipating at least another 5-10%. The main problem is not the cost but the delivery times which are getting longer.

With regards to the concrete issue, there are also delays in the rebar market. What on Earth are the Chinese bulding?

 

[PSlem]

In one year they have developed a heavy equipment industry that is producing 33% of our market in excavators, etc. And when you consider the number of people and the amount of steel to just give each a 2 burner stove, it's a lot of steel. Scrap prices have doubled so junkyards are clearing out their old cars. The roads around here are littered with trucks hauling crushed cars. Perhaps if our steel industry had built a new plant in the last 50 years, instead of waiting for another world war to end so they could buy the plants at ten cents on the dollar, we might be better equipped. Then again, as the jobs went overseas, you have to expect the materials needed would too.

Engineering is the art of not constructing...of doing that well with one dollar what any bungler can do well with two after a fashion.

 

[connect2]

Price of steel? ... it is a testament though, in this country it seems we no longer manufacture? ... just look at the stuff you buy, made in China is all over it ... what with the high tech death rattle its difficult to see how we are all going to make our nickel off the same nickle ... 'New Economy', BS. I don't see much sustainability right now ... churning the service sector and financial sector, off shore out sourcing etc... there's a structural problem here ... hahaha thats why you get my to bits? I like a smoke stack! Great structures to design!

 

[boo1]

The cost of re-bar has increased 100% + in the last three months in NW Fl.

Additionally there was a five dollar per yard increase in concrete last month and a nine dollar per load fuel surcharge. Next month there is another five $ per yard concrete scheduled.