Steel price is HIGH

[JimMc]

Jus got back from Central America and saw several new Chinese-owned factories being built there. They can get labor cheaper there than in China. Imagine that! At any rate, they are now exporting jobs as there economy heats up. Interesting times.

 

[TBAR]

My steel suppliers here at work tell me the Chinese are over here signing contracts for anything from truck load to ship loads quantities of scrap steel. One told me that they have purchased and are disassembling an old steel mill some where up north and are shipping it back to China.

The US dollar is down so steel we would normally receive from Europe, Russia and the East is being sent to China. Hard to believe the have any money to spend while their people are starving to death.

Here in the states many US steel mills have so much back log they are not accepting new orders. Hence prices are sky rocketing.

If this situation stays like this for long it could have a serious impact on our economys recovery.

Oh, for what it's worth 1/2" X 96" X 240" MSPL quoted for today is .41 cents per lb or $1339.55!!! (This price is only good for 24hrs) A year ago this stuff was selling for .21 cents a lb.

Spoke to another one of my steel vendors just a minute ago. He said the Chinese went into Mexico and offered to buy every ounce of sheet steel they could produce. I don't know why but the Mexican mills turned them down.


TBAR

 

[SPIKER]

Yep we had a quote for 30 days, about 2 weeks back was .31 lb, then wanted to add some stuff the price went to .42 only good for 24 hrs! needless to say we firmed up the 30 quote @ .31 ! (spoke to our SS supplier and laum and SS is up same almost .20/ LB over a month ago. and already effective mar 20 the pricve will go up 30% more!!!! ARG.

I think I know why they are doing it the china that is, once no one can afford to buy raw materials and compeat with them the US buisness will dwindle out, and then china will have all the raw iron and labor and factories and the china prices will then go up and they will see a higher return on thie yen. as WE disolve into a 3rd world status they China becomes the world power! I see that already factory closing after factory closing the last 5 years here in OHIO all thanks to CLINTON opening the borders for FREE trade! ya right. FREE to a good 3rd world government all the US money they want!

Sorry but the last 3 years I've spent more time on unemployeement than working full time. I'm lucky the last few years to keep a job in the fabrication areas. and the last 2 months we have not gotten hardly a phone call looking for us to build somethign NEW for anyone....

Well time to get into the food market, everyone has to eat so at least there you can still be assured of having a job.

Mark M /forums/images/graemlins/mad.gif

 

[cowboydoc]

US buisness will dwindle out

I agree completely with you Striker. Yet all you see are people wanted cheap products and bragging about how great every tractor is but the US ones, cars too. We're digging our own graves, one tractor, one implement, one car, etc. at a time. We give all of these countries the knowledge, the skills, and the money to do all these great things like mfg. and farming. Then once they learn how we send them all of our jobs and then buy the product back that they sale. Then you hear the dealers of everything foreign say how cheap and what great quality they have while the same us mfg. that produces a quality product nobody buys because he employed american workers who make more than $1/hr. I just can't help but think the whole world is laughing at us. /forums/images/graemlins/confused.gif

 

[Bird]

Careful, Richard, or you'll get as cynical as me. /forums/images/graemlins/grin.gif

 

[fivestring]

<font color="blue">"I just can't help but think the whole world is laughing at us." </font>

Yes, they are. Their sides are splitting! /forums/images/graemlins/grin.gif

Do a google search on "dumbing down of America" and read some of the info.
Very sad the way our leaders have led us down this path the last 70 or so years.

 

[MF1455v]

Interesting artical on this subject dated 2/19/04.

http://www.globalinsight.com/Perspective/PerspectiveDetail790.htm

 

[wroughtn_harv]

One of my steel supplier managers asked me if I remembered when it, steel, went crazy pricewise in the seventies.

I seem to recall that.

But the one that made it's mark on me was when portland tripled in price when you could get it almost over night in the mid seventies. /forums/images/graemlins/crazy.gif /forums/images/graemlins/crazy.gif

It wasn't to be had. We finally got some by going in with another company and buying a set of doubles together. I can't remember how many bags I got but one foreman and myself by hand unloaded one semi trailer onto two of my two tons.

But I was young and it wasn't work. It was an adventure. /forums/images/graemlins/grin.gif

As for the rest of the world laughing at us. I don't think so. I think they're smiling though. They're getting a taste of the good life we've had all these years.

Good for them.

 

[Charlie_in_TX]

Ya'lls talk about the price increases got me of my duff. I don't know if I got a fair deal or not but I just bought enough steel to make 500 ft of steel picket fence. I got 3700ft of 1/2" sq tube, 1400ft of 1" sq tube, 500ft of 2 1/2" sq tube, 1300 spears, hinges, gate closers ect plus tax for just under $2k. The total weight of the tubing was 2tons. My back still hurts.

 

[jmc]

Hi Jim,

I suspect that China's interest in Central America has more to do with proximity to the US. Right now China is eating Mexico's lunch because of Mexico's "high" labor rate. China's disadvantage is shipping times to "just in time" US markets. If Central America runs out of cheap labor for these Chinese factories, how hard would it be to start a program to bring Chinese labor to Central America? Think up some patriotic sounding name for the program and everyone is happy. For awhile...

John