The State of Steel Construction

As the housing market struggles, Construction Projects new and planned still show continued growth within the steel industry. Vacancy rates for office space in downtown Phoenix is at an all time low of 4.5 % occupancy rate.

 The growth of 2008 thru 2012 by planned projects or on going has a construction value of $3.4 Billion with construction spending coming from ASU, Biomedical, Hotels and Retail. Additional projects in the planning stages could add an additional $2.3 Billion in new construction for Phoenix and surrounding areas adding tremendous excitement to the future of the Steel Construction Industry.

To grasp a better understanding of steel’s impact globally attached is an article concerning the current scrap pricing from one of our steel suppliers.

U.S. scrap prices seen likely to rise again as North American steel makers struggle to keep pace with the rising cost of raw materials, sources are suggesting that more scrap price increases are imminent.

A handful of sources concur that scrap prices will rise again, bucking the historical trend of price relaxation from May through November. No one is indicating the degree of an increase, but it looks as though scrap dealers will not be giving anything back next month, Steel Business Briefing learns. Shredded scrap jumped 38% in April and is selling for $560 a long ton, delivered to mills.

Inventories are low throughout the system. Small dealers that sell us material are low," says an Eastern U.S. processor. "Our inventory as well as most scrap processors' is low. Steel mills do not have huge scrap inventories and their finished product inventory is low.

Service centers are in the same position.. Another eastern scrap dealer who sells to Nucor's; "David J. Joseph Co." says material is flowing at a brisk pace but there is still a deficit due to strong demand. "There is no excess scrap," he notes.

The record selling prices have widened the peddle trade, which now includes homeowners who, after hearing what scrap dealers are paying for obsolete goods, are hauling discarded appliances and any other metals lying around their homes.