Friday, February 22, 2008

Steel supply shortage may push prices to record high

From the USA

Steel prices are rising amid tightened supplies and robust overseas demand.

The worst-case scenario could be a repeat of 2004, when manufacturers of many products, from automobiles to washing machines, faced severe steel shortages and record-high prices.

That's not happening yet, but there's plenty to worry about, according to some industry experts.

The price of hot-rolled steel, a product frequently used by metal-product companies, has increased about 6 percent in the last two weeks. Currently, some steel suppliers will guarantee price quotes for only a short period of time because they aren't sure what prices will be after only a few weeks.

Nationwide there is less than a three-month supply of some materials, and sources of imported steel have dropped dramatically.

Read the full story-Santa Barbara News-Press


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