Since the dramatic rise in US sheet steel prices during the first 5 months of 2010, things settled down in May, and prices did stabilize a bit over the summer months. However, as a result of rising scrap and iron ore prices (driven mostly by foreign demand) AND a reduction in production capacity, US mills are now pushing for price increases once more. On the heels of a $40/per ton hike in mid-August, all mills late last week announced an ADDITIONAL $40/ton increase effective immediately for new orders.
Obviously, in light of the current state of the economy in general, and non-residential construction in particular, these price hikes are more than a bit puzzling. However, the one thing for certain we have learned over the past few years is that the price for US sheet products doesn’t necessarily bear a direct relationship to our business, or even overall economic activity.
