Select your language

Steel prices continue to rise

The high demand for steel has skyrocketed its price, only from mid-December 2007 to February 2008, the increase in the United States was 28%. Forecasts published by the International Iron and Steel Institute (IISI) point to an apparent growth in global steel demand of 6.8% in 2008 compared to 2007.

The global price performance of the product is largely due to the high costs of iron, the basic raw material in the manufacture of steel; in the same way, we must add factors such as the high cost of freight and energy, added to the increase in the consumption of this material by Asian countries, mainly China.

According to IISI forecasts, demand for steel products remains high, largely thanks to the persistently favourable macroeconomic situation in the group of countries known as BRIC, in the emerging nations of Asia and in the Middle East and CIS regions. This conjuncture, combined with moderate but positive demand growth in Europe and the apparent recovery of NAFTA, suggests a global increase of approximately 6% in 2008 compared to 2007.

For the U.S. market, an average price increase of $20 per tonne was successfully applied for flat product sales in the fourth quarter of 2007, followed by ArcelorMittal making an increase of $40 per tonne for deliveries made on or after 1 January 2008. In any case, according to the same company, despite the upward trends experienced by the costs of raw materials, current prices in the United States are below the levels currently registered in world markets.

However, the dizzying pace at which the price of steel rises in the United States is also related to the new determination of the Japanese, South Korean plants and the Brazilian mining giant Vale, which agreed to apply a 65% increase to the price of iron ore. Therefore, most major steel mills in the United States announced further price increases.
The most tangible problem with this news is that the high costs of the material will inevitably be transferred to the market, to the end user, if the Iron, freight, energy in such high percentages rises, the manufacturers of machinery and inputs will have no choice but to pass the price to the contractor and these in turn will pass it on to the end user.

Currently, some steel suppliers are limiting quotes to three-month periods, as they are not sure how prices will be after that time, according to companies that buy large quantities of steel, it is not known where the price will end up this year.

No comments

• If you're already registered, please log in first. Your email will not be published.

Comments are closed

The comments for this content are closed.

Building Automation Days 2025 in Bogota marks a milestone for the KNX standard in Latin America

Building Automation Days 2025 in Bogota marks a milestone for the KNX standard in Latin America

Colombia. With more than a hundred attendees and the participation of six high-profile exhibitors, Building Automation Days by KNX LATAM, Colombia edition, established itself as the most relevant...

Design Envelope Technology Hits 750 gpm Fire Pump Segment

Design Envelope Technology Hits 750 gpm Fire Pump Segment

Canada. In response to the growing demands of the fire protection industry, Armstrong Fluid Technology announced the expansion of its Vertical-In-Line pump line with the addition of the new 5x4x10PF...

Greenheck Launches New RV-220 Model and Expands Its Line of Dedicated Outdoor Air Systems

Greenheck Launches New RV-220 Model and Expands Its Line of Dedicated Outdoor Air Systems

United States. Greenheck announced the addition of the RV-220 to its line of dedicated outdoor air systems (DOAS), a solution that responds to the growing demand for equipment with greater outdoor...

Embraco enters the HVAC market with new scroll compressors and aims to become a full-service supplier

Embraco enters the HVAC market with new scroll compressors and aims to become a full-service supplier

Brazil. Embraco announced its official entry into the heating, ventilation and air conditioning (HVAC) market following the acquisition of the specialized company Xecom, and the launch of a new line...

SIGMAN GROUP and Carrier-VRF reinforce technical training in the HVAC sector in Ecuador

SIGMAN GROUP and Carrier-VRF reinforce technical training in the HVAC sector in Ecuador

Ecuador. An intensive week of technical and commercial training brought together key players in the HVAC sector in Quito and Guayaquil, thanks to the joint initiative of GRUPO SIGMAN and...

AHR Expo Mexico 2025 returns to Monterrey with its most ambitious edition yet

AHR Expo Mexico 2025 returns to Monterrey with its most ambitious edition yet

Mexico. The event returns this year to Monterrey with an unprecedented edition. The exhibition, dedicated to air conditioning, ventilation, heating, refrigeration and filtration solutions, promises...

Fujitsu Launches New AIRSTAGE Multi-Position Air Handler with R-32 Refrigerant

Fujitsu Launches New AIRSTAGE Multi-Position Air Handler with R-32 Refrigerant

United States. Fujitsu General America announced the launch of its new AIRSTAGE Multi-Position Air Handling Unit (MPAHU), designed to provide greater application flexibility by easily...

HVAC project at the Javeriana University, finalist in the CALA Awards 2025 in the HVAC category

HVAC project at the Javeriana University, finalist in the CALA Awards 2025 in the HVAC category

The HVAC system installed in the building of the Faculty of Sciences of the Pontificia Universidad Javeriana, in Bogotá, was selected as a finalist in the HVAC category of the CALA Awards 2025. The...

Concord Project in La Lima Free Trade Zone, finalist in the HVAC category of the CALA Awards 2025

Concord Project in La Lima Free Trade Zone, finalist in the HVAC category of the CALA Awards 2025

The HVAC system project carried out by MultiFRIO for the company Concord in the La Lima Free Trade Zone, in Cartago, received the final prize in the HVAC category of the CALA Awards 2025, a...

HVAC project at the Universidad Santiago de Cali, finalist in the CALA AWARDS HVAC category

HVAC project at the Universidad Santiago de Cali, finalist in the CALA AWARDS HVAC category

The air conditioning project of the Auditorium Building and the Technology Center of the new campus of the Santiago de Cali University was chosen as a finalist in the HVAC category of the CALA...

Free Subscription
Remember Me
SUBSCRIBE TO OUR NEWSLETTER
DO YOU NEED A SERVICE OR PRODUCT QUOTE?
LASTEST INTERVIEWS
SITE SPONSORS










LASTEST NEWSLETTER
Ultimo Info-Boletin