IRON $ on the rise

[MrFusion]

OK What's going on with the price of iron?
I just got back from the mill. A 24 foot length of 2 X 2 X 3/16 square tubular stock cost me 131.50. Six months ago the same piece cost only 41.00.
Looks like I'm going to have to scrounge around the job site for more back up stock.
Anybody know why these prices have tripled in the last six months.

Thanks,
Fusion

[tackit]

I don't know if I'm right but my guess is we are starting to see the results of our American companies taking their work and plants overseas, virtually building state of the art plants in what was before third world countries to take advantage of their cheap labor.
Now these countries are competing for the same raw and finished materials we need.

I read somewhere that our buying Chinese products has built a forty mile long highway in China with nothing but modern factory after factory. I wish they would show it on TV but they probably won't.

[fun4now]

iron$$$

i think we are seeing the results of our assets going to rebuild Iraq causing a larger demand for building materials iron,wood drywall check you're lumber stors prices.as demand go up so to dose price.just going to have to ride it out.it could be years b4 they drop agin although i hope not.

[HAWK]

MrFusion,

China has a huge appetite for steel and is sucking it up at an alarming rate. Due to increased fuel costs and other "factors" the cost of ocean going freight vessels has nearly quadrupled from $7000 per day to $26000+ per day. Figure that into tons of steel imported to the USA and see what happens to price per pound. I think the IRAQ conflict (fun4now has already suggested) as well as the rebuilding of "GROUND ZERO" is also placing a huge demand on an already short US steel supply.

[Andy249]

Thought I would do a google search and see what I could come up with in regards to this subject, found this interesting news article in the process...

http://www.theage.com.au/articles/2004/04/16/1082055647839.html?from=storyrhs

And this article is a long one, but very in depth, although it is mainly concerned with Australia it does a good job at painting the world picture as far as the global steel market is concerned.

http://www.aph.gov.au/library/pubs/rp/2002-03/03rp09.htm

Happy reading!!

Andy249
"Its the way it spatters that matters"

[Tanner]

a little info for the US

http://energy-efficient-products.ebu...832&catCode=29

[MrFusion]

Thank you all for the input. The articles were also interesting. It goes to show us that we can not take steel prices for granted anymore. It looks like I'm going to have do more research on prices in my area. And I have no alternative but to raise the price of fabrication, and final product.
I have a small fabrication business on the side. I work out of my garage.(nights & weekends) I built a motorcycle trailer for myself from scratch. My neighbor saw it, and made me an offer I could not refuse. Other people saw it and wanted one. That is how it all started. Now I build all types of trailers. Word of mouth is a wonderful thing.

By the way, I ordered my new Trailblazer301G today. They said two to three weeks for delivery due to the fact it has GFCI's. Can't wait!
Then we are going mobile.

Thanks again
Fusion

[HAWK]

MrFusion,

You will enjoy the mobile work! I did it for quite a few years before I decided to go back to the shop. Have fun!

[timw]

Mrfusion

Keep your eyes open on your trailer market and watch for other possible things to produce. Here in Fla it seemed like everyone jumped into the utility trailer market at once and the price of them dropped. They were jigging them and pumping them out. The market is so tight that if you see an ad (and there are lots of them) the price stated is with used tires. If you want new tires you pay extra.

[MrFusion]

Tim,
I noticed that when I was booming out down in FL. I worked out of Tampa (397) for a couple years. FP&L Power house in FT. Myers. Man that was a great job, fun in the sun.

It's the same up here too. That was the reason I built my own. I was noticing the cheap light iron everyone was using, and the poor welding quality. I strictly just build to order, with not a penny spent on advertising. My customers are putting their 20G - 25G Harleys and custom choppers on my trailers and hauling them across the country.
Then people would come to me for other things, like heavy equipment repairs right down to welding a custom exhaust on their vehicles.
I'm having a blast, and making a few bucks to boot. It's paying for all my new equipment.
My next trailer will be for myself, a custom welding rig, for the new TB. YEE HAA

[timw]

It's funny how things evolve, a friend ask me to repair a couple mortar mixers three years ago. Now I am a Stone and Multi-Quip Mixer Dealer and Honda Engine Dealer.