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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% in the past two
weeks. Some steel suppliers will guarantee
price quotes for only a short period of time
because they aren't sure what prices will be
after a few weeks.
Nationwide, there is less than a three-month
supply of some materials, and sources of
imported steel have dropped dramatically.
"We see the United States entering another
period of really disrupted steel prices and
availability," said Bill Gaskin, president
of the Precision Metal forming Association,
a Cleveland trade group with members in
Wisconsin.
"People are seeing significant increases in
prices," Gaskin added. "We have seen some
reports of anticipated shortages, or
nervousness, coming out of the Twin Cities
area."
Steel is the main raw ingredient for many
manufacturers. Increased costs can translate
into higher prices for manufacturing
companies and, ultimately, consumers.
The price of stainless steel has more than
doubled since 2003 and has remained high for
months.
It's been felt at Kahlenberg Brothers Co., a
113-year-old Two Rivers manufacturer of boat
propellers and ship whistles.
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