On July 11, US Steel announced an increase of $40 per short ton on flat-rolled steel effective with September deliveries. In addition, AK Steel will be raising carbon steel prices by $50 per ton on September 1. These moves came just after analysts were starting to believe that U.S. prices may be hitting their peaks and preparing to level off.
 
It’s significant because it underscores the idea that Tom Balcerek, North American editor of Steel Business Briefing, expressed during my recent interview with him for our July 10 issue: A lot of experts are scratching their heads on where exactly this market will go in the next month or even the next year.
 
The one thing that is certain is that 2008 has been like no other year in the steel business. I asked each of the people interviewed for the July 10 article in MDM (Pressures in the Steel Market) to compare today’s situation to the last time steel prices rapidly spiked. The consensus was there is no comparison, to 2004 or or any other year for that matter.
 
In spite of the challenges presented by the price spikes and supply constraints, manufacturers like Posi Lock Pullers, Cooperstown, ND, and distributors like Portland, OR-based General Tool and Supply Co. say business continues to be good -a fact that will help them weather the continuing volatility.