Steel prices in the United States are 68% above world market prices and nearly double that of China, even as prices in both China and Europe have risen more than 80% from the low prices caused by the pandemic.
Steel Dynamics said it couldn't get enough flat sheets even for its own internal operations.
“This is very frustrating,” said Hale Foote, president of Scandic Springs, a California-based aerospace components manufacturer. "I want to achieve a great business ... but I have no inventory."
Scandic Springs faces the risk of losing a $ 1 million annual contract as it cannot find a local supplier willing to supply 240,000 pounds of cold rolled steel.
Indiana-based Stone City Products, which supplies components to home appliance and automotive manufacturers, is also struggling to procure 2 million tonnes of hot rolled steel per year for the new project.
The company has seen a sharp turnaround in business after a pandemic low in the second quarter of 2020, when orders fell 50%. Its backlog is now 25% above pre-pandemic levels.
Not to be outdone, he works in his factories seven days a week and has increased his headcount by 40%. But steel that used to be delivered in eight weeks last year now takes 12-16 weeks. The factories do not accept requests for additional purchases.
American manufacturers are grappling with steel shortages and rising prices
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Azovpromstal® 1 March 2021 г. 12:14 |
