[TheForge] Steel Prices

Fri Dec 5 09:34:08 2003

In a message dated 12/5/2003 8:46:54 AM Eastern Standard Time, 
[email protected] writes:
Good part is they sell 
what they have in stock at the price they brought it at I guess,
I would disagree with that.  Every mill and warehouse that I am familiar 
with, uses LIFO (last in first out) method as they could have many popular items, 
say 1" diameter, where they may have numerous purchases all at different 
prices.  How would they charge you if some of the material was purchased at one 
price and part at another?  To cover the cost of replacement inventory, they have 
to use LIFO.  As far as price increases, steel is now selling for about 6% 
below what it cost in 1975, the cost to the mills has not gone down and all 
continue to lose money at these prices.  The foreign mills are dumping steel here 
in the US as their governments subsidize them in order to keep full employment 
in their country, and are basically exporting their unemployment problems and 
the problems associated with the "idle" unemployed.  Count on prices going 
up.  
Michael

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