Here's one of the reasons...

http://www.usatoday.com/money/autos/...l-prices_x.htm



On Thu, 6 Jan 2005 21:42:27 -0500, "John Grossbohlin"
wrote:


"George" george@least wrote in message
...

"John Grossbohlin" wrote in message
...

As I recall, Cat also reported that their costs for plate steel went up
105%
in the past year!

Amazing, isn't it? First we get anti-dumping trade restrictions reversed
by
the WTO and then the price skyrockets. If we could build a steel mill
anywhere, now'd be the time.

It seems that the economic downturn lasted so long that many companies
closed mills. Now that the demand is way up internationally there is not
enough capacity to meet the demand. Add in the Chinese buying up all the
scrap they can get their hands on and the prices have gone WAY up... Also
add in the fact that the opportunity costs of opening a new mill are huge,
and the time to get one on line long, it's pretty hard for the industry to
respond to the high demand quickly... and with the investor's luck it's
arrival on the scene would probably correspond with a new downturn!

John
Glad I bought all my big iron in the past... except a big lathe that is. ;-)