It is still not clear who is winning in the trade war we are experiencing, but it’s quite clear that US domiciled machine shops and fabricators are on the losing side. The raw material cost is increasing constantly, which means that shops need to raise their prices. This is a conversation business owners dread having with their customers, but it is something that most of them will have to do, because prices decreased is not forecasted for the near term.
Key Takeaways:
- Steel prices are increasing at a very high rate which is going to have a major effect on metal fabricating companies.
- Since steel prices aren’t likely to reduce any time in the near future, many people believe new steelmaking capacity is needed.
- Since the prices of steel are increasing so much, the metal fabricating industry is at severe risk and that can have a trickle down effect on the U.S. economy.
“Steel prices are not going to recede significantly in the foreseeable future.”
