Current Trends in American Market Steel Prices

Steel price has been identified as one of the primary reasons for the general increase in prices based on the world wholesale price index. Analysis of the prevailing trends in these data can be used to gain insight into local American steel industry pricing.Steel is considered so important a commodity that it is part of world product indices. Steel is essential in all industries either as a raw product or needed in creating factors of production. US prices of steel follow closely global prices. Recent development has indicated that demand will have a greater effect on prices rather than supply. Aside from the interaction of supply and demand, US markets are also very reactive to global market developments and these factors have proven to be indicative as well of US steel market prices.In the extreme, certain business areas can be largely affected by shortages and price increases, strongly influencing their overall profitability and ultimately, in certain cases, threatening their survival. In the following I would like to investigate some of the causes, effects, and remedies for the price of steel in the United States’ market and will attempt to make some predictions as to its future development.The question of steel prices has moved into the center of attention of the economic world since they started skyrocketing over the last 2 to 3 years. The increasing demands for steel in building industries have both prompted liberalization and protectionism in some countries. In 2002, the United States raised tariffs on imported steel to help its local industry from a price war, and to create the competencies it would need to become more viable in the world market. As steel is at the core of a large number of products, increases in the base product have a tremendous effect on the prices of the subsequent product and thus on several price indices.