· U.S. steel mills have done an excellent job of removing steel producing capacity from the system by shutting mills. The mills remaining in operation are producing at about 64% of capacity. Limited supply translates into higher prices.
· Worldwide demand for steel is increasing, especially in China, India, Brazil, and other developing countries. Economies in these countries are recovering faster from the global recession than the US economy.
· Recently steel prices in China have been higher than U.S. prices effectively eliminating the ability to import steel from China.
· The weak U.S. dollar creates the ability for U.S. steel mills to ship steel overseas at a profit thereby reducing the supply of available steel in the U.S.
· Steel tariffs…to date no tariffs have been placed on the steel we purchase; however, recently announced tariffs on other types of steel create a negative tone regarding the import of steel from other countries and may lead to additional tariffs.
· US steel producers have announced price increases now totaling $310/ton ($0.155/lb) since June 2009.
MiTek works diligently every day to find the lowest possible cost steel so as to provide the greatest value to you.