We have been hand to mouth with a lot of customer requirement, said Stewart Rariden, the companys president. To keep up, it is running its factories seven days a week and has increased headcount by 40.īut steel that used to get delivered in eight weeks last year now takes 12-16 weeks. The company has seen a dramatic turnaround in business after the pandemic lows in the second quarter of 2020 when orders plunged 50.
Slideshow ( 4 images ) Indiana-based Stone City Products, which supplies components to appliance and automotive companies, is also hard-pressed to procure 2 million tons of hot-rolled steel a year for a new project. Scandic Springs faces the risk of losing a 1 million annual contract as it cant find a domestic supplier ready to supply 240,000 pounds of cold-rolled steel. I am looking at great businessbut I dont have any material supply.
It is very frustrating, said Hale Foote, president at California-based aerospace parts maker Scandic Springs. Centralino domino 312 ncli manualeĬapacity utilization rates at steel mills - a measure of how fully production capacity is being used has moved up to 75 after falling to 56 in the second quarter of 2020 but is still way below 82 in last February.Ī TIGHT STEEL MARKET Steel producer Steel Dynamics last month said it cant get enough flat-roll sheets even for its own internal operations. The group, which represents more than 30,000 companies in the manufacturing sector and downstream supply chains, this month asked President Joe Biden to terminate Trumps metal tariffs.ĭomestic steel mills that idled furnaces last year amid fears of a prolonged pandemic-induced economic downturn have been slow in ramping up production, despite a recovery in demand for cars and trucks, appliances, and other steel products. Our members have been reporting that they have never seen such chaos in the steel market, said Paul Nathanson, executive director at Coalition of American Metal Manufacturers and Users. Soaring prices are driving up costs and squeezing profits at steel-consuming manufacturers, provoking a new round of calls to end former President Donald Trumps steel tariffs. The benchmark price for hot-rolled steel hit 1,176ton this month, its highest level in at least 13 years. Unfilled orders for steel in the last quarter were at the highest level in five years, while inventories were near a 3-12-year low, according to data from the Census Bureau. Steel is in short supply in the United States and prices are surging. TennscoHandout via REUTERS Both companies and more are getting hit by a fresh round of disruption in the U.S.
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