Steel price is HIGH

[fivestring]

<font color="blue">"Think up some patriotic sounding name for the program and everyone is happy. For awhile..." </font>

S C R A P

Securing China's Role in American Politics

 

[rdbrumfield]

all that work to build a fence, hold onto that steel and double your money as scrap in 6 mo.
You did great on the price, here just the 21/2 tube would have cost that much.

 

[fishman]

Fivestring, how long did it take you to come up with THAT! Too funny! /forums/images/graemlins/laugh.gif

 

[PineRidge]

I had an interesting conversation today with (neighbor X) that is a purchasing agent for a major player that supplies Heating, Ventilating, and Air Conditioning products to retail dealers. They have warehouses in many states nationwide. He went on to say that China is purchasing new as well as all scrap steel that they can get their hands on in massive quantities for construction needs for their own Country. He also went on to tell me that it has quickly driven the prices paid here for steel related products through the roof. As an example common sheet-metal sizes 36" X 96" X 26 gage is normally purchased by his company for $6.00 per sheet. The price over the past 6 months has jumped to $13.00 a sheet for the same sheet steel. Plus his company reserve is now down to a mere 30 day supply which is the lowest reserve that they have ever seen and he sees no immediate relief in sight. The current steel prices are so volatile that he now prices sheet steel to his customers on a day to day basis.

His research has indicated to him that China is ongoing major growth and has construction already planned for the next 4 years. He sees the trickle down affect touching all steel related products from tractors right on down to bread toasters. /forums/images/graemlins/mad.gif

 

[SPIKER]

Charlie: 4000 lbs of steel for $2000.00 thats about 50 cents a LB, and that is HIGH: steel price 2 years abo was in the 25cent/lb range, steel 2 months ago was 30cents a lb steel this month is like you saw 50 cents a lb

anyhow all the steel stuff I need is going to cost me a fortune now, when I can't afford it cause we arn't working enough to stay busy.

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

 

[TBAR]

As I stated above I am seeing the same thing. I just wonder how a nation of a billion or so starving people can suddenly commit to buying so much steel?

Almost like the Bass Brothers trying to corner the silver market years ago only on a much larger scale.


TBAR

 

[MikePA]

<font color="blue">I just wonder how a nation of a billion or so starving people can suddenly commit to buying so much steel?</font>
The current population of China is 1.25 billion. All of them are not starving.

<font color="blue"> Almost like the Bass Brothers trying to corner the silver market years ago</font>
Do you mean the Hunt Brothers? /forums/images/graemlins/confused.gif Are you implying that China is buying up steel worldwide simply to drive the price up?

 

[have_blue]

</font><font color="blue" class="small">( [Are you implying that China is buying up steel worldwide simply to drive the price up? )</font>

China has over 1 billion people. If we woke up one day and they used half as much steel per-capita as US sitizens, the world's supply of steel would be totally consumed for months.

 

[MikePA]

<font color="blue"> China has over 1 billion people. </font>
As I mentioned before, 1.25 billion.

<font color="blue"> If we woke up one day and they used half as much steel per-capita as US sitizens, the world's supply of steel would be totally consumed for months. </font>
Great news for people selling steel. Bad news for people buying steel.

TBAR's reference to the Hunt Brothers implied (at least to me, which is why I asked for a clarification) that China is buying up steel, not because they need it, but because they only want to drive up the price.

 

[Jim_in_Omaha]

Seems like there was some kind of tarriff for a while on import steel. I wonder if this is the wave effect from that?

Just glad I don't need to buy a bunch of steel right now.
Jim

 

[TBAR]

</font><font color="blue" class="small">( Do you mean the Hunt Brothers? Are you implying that China is buying up steel worldwide simply to drive the price up? )</font>

Thanks for the clarification Mike. The thought had gone through my mind. /forums/images/graemlins/grin.gif


TBAR

 

[AndyM]

I'm having a dumb moment here. Why can the U.S. steel companies make more steel if there is demand for it? The capacity it clearly there. There are empty steel mills all over the upper Ohio Valley, and I'm sure they could be purchased quite cheaply by ISG or other companies and started backup again.

 

[5030]

Mike:

I posted on this subject some time ago. You know that I deal intimately with the steel industry at my day job.

Here is the scenario and it really doesn't pertain to China's industrial growth or NAFTA for that matter. However, I do rest a part of the blame on Mr. Bush as I believe he and his advisor's were aware of what was really happening.

Last year China began buying American scrap steel in boatload quantities and shipping back home. American scrap was at an all-time low per ton price.

In the fall of last year, the largest Taconite producer lost their most productive mine due to a fire. The mine was flooded and ceased production until sometime in the spring of this year. This mine provides 35% of the Taconite for U.S. mills.

There are 2 types of steel producers in this country. The largest type is the mini-mills. The mini mills derive their product from the electrode melting of a charge of scrap steel.
The other type is the mill that produces steel from iron ore or Taconite. This steel is melted in a BOF type furnace and run on a continuous caster and then rolled into coils or what we call steel bands. The mini mill also uses a caster and rolling mill.

The one-two hit of the mine going off production and the Chinese buying all the scrap they could (at a low price) has resulted in both types of mills not being able to produce steel.

Mr. Bush rolled off the import tariff, paving the way for the Chinese to import steel into this country basically duty free. We call this boat iron.

I question Mr. Bush's motives for rolling off the tariff. The papers spouted WTO, but I think that there was a lot more than WTO politics involved.

The lack of steel is going to affect every man woman and child in this country. The cost of durable goods is going to go up and not just a little. I wonder if the economy in this country is going to be able to stand it?

I know this post is somewhat politically jilted. I do try to adhere to the ethics and principals of this site. Please accept my apology for the post. I just want to air exactly what is going on as it pertains to the citizens and consumers of this country.

 

[AMP762]

Seems like a little while ago we had tariffs,third world co. were dumping steel on the market and we could not compete.
Mills shut down,people were laid off.
Ain't it a crazy world we live in /forums/images/graemlins/confused.gif


Don't worry,nothing is going to be alright

 

[TBAR]

</font><font color="blue" class="small">( Mr. Bush rolled off the import tariff, paving the way for the Chinese to import steel into this country basically duty free. We call this boat iron. )</font>

There isn;t any "boat Iron" coming into the States right now. Are you suggesting that event is in the future?


TBAR

 

[wroughtn_harv]

I quoted a pipe rail fence yesterday. It was a seven day price based upon the volatility of the steel market. We've agreed upon a materials deposit on the job. I will pay for and deliver the pipe to the job site and have it on hand at today's price. Even though I won't start the job for a couple to three weeks.

As for the politics, our dollar is down, way down. That means our scrap is cheaper on the world market than anyone elses. It doesn't matter who's buying or what their politics are. We have the cheapest scrap, for them. /forums/images/graemlins/smirk.gif Not us. /forums/images/graemlins/confused.gif

 

[SPIKER]

yes I agree; it was a left over from the CLINTON erra not due to bush: once signed the WTO free trade stuff has to be put into effect as an act of congress and such can not be vetoed by bush. he can how ever start the progress all over to repeal it!

so try to not blame him for something that was left over form clinton! anyhow I don't think I'll be voting for bush in next election due to the fact that WE (USA people) can't afford to pay all these taxes and send them over to rebuild a terroust country! piss on them they can rebuild it themselves! I don't mind forces in-place to gaurd them setting up a government to keep such things form happeneing but I haven't had steady work since before 9-11 so my bank account has no where left to go...

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

 

[wroughtn_harv]

Let's just say you dislike Bill only half as much as I detest Dubya.

As for the prices going up.

That's life. One of the prices we're going to have to pay for a free world is competition for the limited resources.

 

[sl3uth]

</font><font color="blue" class="small">( piss on them they can rebuild it themselves! )</font>

Funny...that's exactly what we did to BinLaden back in the day...and why he hates the US so much.

Sam

 

[slowrev]

Spiker,
And here I was thinking it was the other Bush that passed it on to Clinton. Oh well.