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RE: cement shortage

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In a normal supply and demand equation, you'd be correct. This situation is slightly different. In the U.S., there is no scrap shortage; rather the prices have increased because the market has accepted higher prices. (The situation is somewhat analogous to fuel in the U.S.-I can readily fill my tank, I'm just unhappy about the prices I'm paying.)

And since there is no scrap shortage, there is no wide flange shortage (the situation is different for plate and HSS, which is why I specified rolled beams and columns). If you can privately let me know which fabricators are claiming material shortages I'd be grateful.


Scott Melnick

 -----Original Message-----
From: 	Paul Crocker [mailto:pcrocker(--nospam--at)] 
Sent:	Friday, May 21, 2004 11:19 AM
To:	Melnick, Scott; seaint(--nospam--at)
Subject:	RE: cement shortage

Suppliers for at least one large structural steel project that I am familiar with have recently been expressing concerns about their ability to obtain very large quantities.  I tend to write off that kind of talk as pre-bid posturing for better prices, but in this case there are enough interested bidders wanting to sell steel and telling the same story that I don't think posturing is all there is to it.  Although the high energy prices that you mention can cause higher prices without necessarily causing shortages, the demand for scrap elsewhere in the world could definitely cause shortages.  Less available scrap translates to less available structural steel.  

Paul Crocker, PE, SE

>>> "Melnick, Scott" <melnick(--nospam--at)> 05/21/04 07:55AM >>>
Just one clarificationà.
While structural steel prices have been climbed dramatically, there are no shortages of rolled beams and columns. The price increases in structural steel relate to the increased production costs (brought on by such factors as rising energy costs and Chinese demand for scrap).
Scott Melnick

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