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No slowdown in astonishing scrap market uptrend

With robust demand registered in all regions across the world, scrap prices are continuing their astonishing upward movement. Each passing day it gets harder to find the morning price levels by the time evening comes.

Bulletin courtesy of Steel Orbis []

US execs say high prices here to stay; must be passed on

Record US steel prices, driven by soaring input costs, are unlikely to go down anytime soon, the heads of five high-profile steel and raw materials producers say.

Speaking during a round table discussion Monday at the joint meeting of the American Iron and Steel Institute and the Metals Service Center Institute, attended by Steel Business Briefing, the executives were in agreement that increasing global demand for raw materials and steel are making for volatile times for their customers.

Information courtesy of of Steel Business Briefing []

Panic Buying Sends Steel Prices to New Record Highs

April 25, 2008 – Today saw steel prices soar to record highs as a report released by world steel producers confirmed worries that current production has failed to keep pace with world demand. One industry official, who did not wish to be named, expects the panic buying to continue and noted that “for the past decade, prices of scrap steel fluctuated between $50-$80 USD/ton.” Late last year, that price doubled to $150 -$200 USD/ton. By March 2008 it doubled again to $345USD.

Today’s surge to $865 USD/ton reflects a depletion of steel reserves to historic lows and the inability to increase production to keep pace with world demand.” One economist today noted that steel at these price levels will have a devastating effect on consumers worldwide. The world’s economies are built on steel. Without it, the machine breaks down. Right now there simply isn’t enough to go around.

Where will it stop?Nobody seems to know.After today’s activity, many feel certain that more increases are ahead.How high will it go?

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Pallet Rack Purchasing Tips II

Removing the risks – buying used pallet rack and other pre-owned equipment

Certainly, you can save money by purchasing used pallet rack instead of new equipment. Are there are some risks involved? Yes! Will it likely to have a shorter remaining service life and is there no manufacturer’s guarantee? Not necessarily! A common misconception is that with used equipment you’re not really sure what you’re getting. You can, however, easily reduce and even outright eliminate many of these risks by simply dealing with the right people when entering the used market.

Here is a primer that covers a few of the basics.

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The Next Economic Crisis

Rising steel prices may cause more problems than fuel.

Back in 2006, the price of steel went a little bit crazy for about a month. Base prices, discounts and surcharges all fluctuated weekly – even daily. In the end, contracts were not honored and customers were charged whatever the market would bear on the day of delivery. Scrap, which had sold for 60 dollars a ton back when gas was $1.50 a gallon, was going for 150 to 200 dollars a ton depending on location.

Then things normalized. Prices went down a little and stayed more or less stable. There was some speculation for a while about whether the claimed shortages were real or the steel companies were just being greedy, but generally the whole incident was gladly forgotten. Well I hate to be the bearer of bad news, but the elements are in place for real shortages and even more drastic – even catastrophic – price increases.

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Who you buy it from is often more important than who made it

Pallet rack, like the majority of material handling equipment, is available from several quality manufacturers in the United States. The question of what to buy is normally fairly straightforward. The real question is, who you buy it from to get the best possible deal in terms of price, delivery and support. There are several options.

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Spammers have a Field Day with Search Engines

It seems as if nobody is immune from the scourge of search spam. Simply go to Google and do a search for pallet rack. You’ll be inundated with so-called “material handling sites” who make claims like:

at blah blah blah .com we have everything you could ever want or need. We have the best , biggest, monster sized selection of pallet rack at the lowest, best, baddest prices on the planet.

Now you say to yourself, how can everyone be saying this? Could it be that some of these claims are a sight exaggeration? Could some of them even be *Gasp stretching the truth?

So you decide to click on the link and arrive at a site. What you find is no material at all. As for pricing, nothing.

What you do see is a message saying “call or email us for a quote.” While there’s nothing inherently wrong with asking for a call or email to get the business, I do think it’s dishonest to advertise yourself as the pinnacle of your industry without having anything to back it up.

What do you think?

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