Soaring steel prices

Concrete Construction, April, 2004

"Steel price increases have been sudden, steep, and devastating," Ken Simonson, the Associated General Contractors of America's chief economist said. AGC has heard from members all over the nation who report double-digit increases.

"The cost of steel for one bridge project has risen by $15 million since the contract was signed," Simonson reported. "Few construction companies can afford to absorb cost jumps of that size. I worry that these price spikes are going to cause bankruptcies and job losses."

At the recent World of Concrete, the rising price of steel was a major topic of conversation for everyone from contractors worried about rebar prices to manufacturers like Dayton Superior and Connecticut Steel and Simplex Forms, who are having difficulties even getting steel for manufacturing. The price spike is reportedly due to a combination of Chinese purchases of scrap and raw steel, the tariffs recently rescinded by President Bush, and rising demand in other industrialized nations.

CONCRETE CONSTRUCTION will keep you informed of this situation over the coming months.