This week, the media has been flush with articles regarding the sharp increase in steel prices around the globe—particularly in the U.S.—and the reasons for the hike. Just today, we published a press release on the ISS news feed regarding AK Steel Corp.'s increase of its carbon steel products by $150 per ton. Here are few other related headlines:
- Steel Prices Staying High Despite Lagging U.S. Economy
- Russian Billionaires Bet Big on U.S. Steel Market
- Slowing Economy Can't Stop Steel Prices
For many of you, these developments harken back to 2004, when the storage industry grappled with a similar crisis. I'm not being alarmist or attempting to paint a disheartening picture for the future of self-storage construction. But it makes sense to understand the changes happening in the market and how they could affect our industry in 2008/2009.
Here's a quote included yesterday in an article published by The Oxford (Ohio) Press:
"The global trend right now is that the raw materials used for making steel have skyrocketed, so the price trends for steel are not just increasing here but around the world," said Nancy Gravatt, spokeswoman for the American Iron and Steel Institute. "That's why we see a strengthening in steel exports from the
India is another country struggling with inflation of essential raw materials. The national government is prepared to take the necessary steps to rein in prices, however. It will be interesting to see what, if anything, happens in stateside legislature to the same end. According to an article published today in The Economic Times:
Commerce and industry minister Kamal Nath, currently in Singapore, told reporters on Friday that the government would not hesitate to act against hoarders and profiteers. He said supply-side management is a challenge to controlling prices of essential commodities. “We will not hesitate to take the strictest measures, including using legal provisions against hoarding and profiteering, whether in food, cement or steel,” Mr. Nath said.
Next week, Inside Self-Storage will release an in-depth article on the topic, written by Editor Amy Campbell. Amy's been in contact in with several of the industry's builders as well as some steel companies to create an insightful overview the situation. You'll find it published to the ISS home page early in the week, so please watch for it. And, as always, feel free to post your comments to this blog by using the 'Leave Comment' link below. How do you see this all shaking out?