Prices for steel will rise through early 2017 on the expectation of more infrastructure spending by the Trump administration and robust construction of hotels, office and school buildings. Over the longer run, though, production overcapacity in China will help temper increases.
The cost of steel plate products, used in bridge construction, pipelines, etc., are already up sharply—a 20% increase since the presidential election. Buyers are also shelling out 7% more for steel-reinforcing bar used in road and bridge and building construction. Also up: Prices for hot- and cold-rolled steel, used to make cars, appliances and more. Hot-rolled steel is up 14%; cold-rolled 11%. Meanwhile, scrap metal is selling for 16% more.
Log in to see the rest of this article and the discussion
Kiplinger Alerts is a subscription-based e-mail and online alert service that helps you make more profitable decisions for your business and investments. You get reliable intelligence and forecasts on more than a dozen factors that affect the economy and are critical to your business and financial success.