Why are the Prices of Structural Steel Rising?
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The price of structural steel varies from day to day; steel is a global commodity whose price relies on different internal and external factors. Natural disasters and the strength of the American dollar can influence the supply and demand of steel, affecting the price of the commodity.
In the aftermath of the most recent Tropical Storm Harvey in Houston, structural steel is likely to receive a boost. Between 30 to 35 percent of U.S. steel imports come in through Houston, and any effects on business in the area could create a ripple effect, that pushes the price of still up towards the end of the year, into the beginning of 2018.
The import and export of steel is likely to suffer a hit as Houston recovers from the storm, which will increase the price of steel.
At the beginning of September, there was a $15 to $30 price increase per long ton, as the market looks to keep up with recent upticks in export prices. However, the figure might rise to recover from the effects of hurricane Harvey.
If you are interested in investing in a steel building kit, you might want to take a wait and see approach, until Houston returns to some form of normalcy. Additionally, shift your focus to the international market, especially China, as it will continue to influence the price of structural steel.
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