Structural Steel Prices
Structural Steel Prices
(OP)
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?
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
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RE: Structural Steel Prices
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.
RE: Structural Steel Prices
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%.
RE: Structural Steel Prices
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
RE: Structural Steel Prices
With regards to the concrete issue, there are also delays in the rebar market. What on Earth are the Chinese bulding?
RE: Structural Steel Prices
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.
RE: Structural Steel Prices
RE: Structural Steel Prices
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.