Price of Steel

[rkelso98]

Just curious after reading some RV websites, they say the price of steel is going up 30% and more. Lots of guys replying about how it's affecting their jobs and costs of work. I wonder how, if any, this might affect those of us waiting on trucks? Hope they don't cut corners to cut costs and this doesn't delay mfg.



Problem seems to be that most of the scrap metal is being bought up overseas, same thing with wood due to the dollar vs foreign currency.

 

[Tardog]

Ya you are right, steel prices are going up , We build steel bridges and plate suppliers are quoting weekly prices. Most are up 20% since January. We mostly use 350AT (high nickel). Some are even suggesting a shortage this summer?

 

[KKlepfer]

You're right I just read an article in the WS Journal last week. The article gave the impression that larger manufactures establish a contract price. The suppliers are the one's who take it in the ****. But your right the auto manufacturers are going to eventually pay the increase and that's when we'll see it at the consumer end.



By the way its not just the weak dollar that is causing the increase. China is buying up a large % of the supply and that is supposed to be the main catalyst to the price increases.

 

[gonzo2]

You betcha! Every single supplier of mine involved with metals from re bar to nuts and bolts is sending me continual faxes from repricing to payment terms to availability etc. etc. . I'm not sure how much is true and how much is scare tactics but the heat is on!

Auto manufacturers keep the screws on their suppliers pretty tight, but somewhere down the line we'll be paying more.

 

[DF5152]

i do alot of work with steel my supplier told me that part of the problem is the the government lifted a bunch of tarriffs so domestic suppliers are reaising there prices before the over seas stuff arrives and floods the market.

 

[PPeters]

Bunch of factors feeding this, like scrap is now over $200 a ton, 6 months ago it was under $100. Coke production is down, so there is a "shortage" in the domestic market of new steel. Tariffs lifted around the same time, plays in also. We run between 1 to 2 million pounds of steel through the shop a week, and we're having a hell of a time getting steel. Prices are changing about every two weeks, the cost of coil stock has doubled since the first of the year. Just priced a new '04, and the cost has gone up between the website and the dealers numbers. I suspect it has something to do with steel prices.



Pat

 

[KKlepfer]

Be careful w/ correlations. This time of the year dealers jack prices because of tax returns. A lot of people have $$ burning a hole in their pockets. The couple friends I had in auto sales always told me this is a bad time of year to negotiate a new vehicle. Now if anyone can verify increased invoice prices less destination costs (price of oil), this would be strong evidence of prices being effected by steel supply.



IMO, I seriously believe larger manufacturers protect themselves with contracts. The Big Three live and die by volume so it would seem logical they would protect themselves from supply side market forces.

 

[SMorneau]

I seriously doubt the domestic automakers are going to pay anymore than they have too for steel. When I worked at TORO we would get a good draw quality steel for mower decks only when the auto industry was in a lull. They were the dog wagging the tail.



I don't doubt the suppliers will fight to keep their margins but they won't be gouging.

 

[TX Gooseneck]

We've seen two increases this year and another coming soon. Overall steel is up almost 50% and expected to rise another 50% by summer. This affects our axle price, wheel price, steel price, and pretty much everything else. From what everyone is saying we haven't had a steel increase since the late 70's though. Prices for scrap are going nuts too. Last August you would get . 02/lb if you were lucky, now it's over . 05 and rising. You can only absorb so much before you start raising prices.

 

[Gary - K7GLD]

I can just see it now, new Dodge frames made outta a new space-age "hydroformed" plastic - strongest and most rust-free of any of the big 3...



HEY - I'm almost ready to swap off my '02, with that big HEAVY ugly 'ol STEEL boxed frame...

 

[DJW]

Look Out! the Sky is Falling, everything is going UP, well not everything, unfortunaetly. Hope springs eternal, perhaps it will rise again? Of Plastic replacing Steel, on a German TV program it claimed that in a few years all new cars will have to contain at least 90%odd of recycable materials, wonder who wrote that piece, all parts of all vehicles ever produced, were pretty well recycleable, as of a Hog the only part difficult to save is the Squeal, and you can be sure they are working on that. Scrum Down

 

[fencebuilders]

Ornamental steel fence panels,chain link fence materials,vinyl fence materials are all way up here. (california) Not to mention fuel prices The heat is definitely on. A supplier told me the Chinese are building a dam,and buying up everything they can for the project,take that with a grain of salt. It aint pretty,especially heading into building season.

 

[TX Gooseneck]

I've been hearing from all my suppliers that there is a huge buy up from China. Why we are selling anything to those *******s is beyond me. If given the chance they would attempt to take us over tomorrow.

 

[fencebuilders]

Originally posted by TX Gooseneck

I've been hearing from all my suppliers that there is a huge buy up from China. Why we are selling anything to those *******s is beyond me. If given the chance they would attempt to take us over tomorrow.

Agreed!

 

[SMorneau]

It's amazing how marketing can mold the public's perception. People think steel is simply thrown away when in fact it has always been recycled at a very high rate. On the other hand everyone thinks the plastic is recycled at a high rate when in fact it's not. TORO had an tree hugger battery powered rotary mower that was touted as being recyclable plastic. Yah right, it had a steel deck underneath it so it would be safe and the plastic was just extra weight. A chunk of plastic that was not really necessary... now thats environmentally friendly.

 

[BillGotthelf]

Depends on the type and quality of steel. Rebar has doubled in price since Nov-nails have also doubled. We are being told that allocations are going to take place soon. Metal building prices have gone up 55% and they have no idea where to set prices-30 days is it. Not a good thing for the Bushes if things get worse for summer.

 

[KKlepfer]

WSJ just published an article today and its interesting that the suppliers are able to tack on surcharges to an already negotiated contract with their smaller customers. Mattresses, exercise equipment, and appliances are expected to pass on increases to the consumer. I purchased a washer this weekend; just in time it looks like.



The article went on to address larger manufacturers: "Not all customers, especially bigger ones with more purchasing power, are acquiescing. Toyota Motor Co. Friday warned parts suppliers and steel mills to keep honoring their existing contracts w/ the auto maker. 'If I were them I would seriously consider an impact on the long-term relationship. That's important to us, and we do have long memories on these things,' said Dennis Cuneo, a senior Toyota executive in New York. "