While steel prices vary from
country to country, rising input costs are generally driving prices of steel
upwards.
Rising input costs means it
is more expensive to produce steel than in previous years due to global
increases in prices of iron ore and hard coking coal. This leads to higher
prices on steel products.
In fact, according to
MetalMiner, base prices for stainless steel increased by 300% between January
and July 2016. Just a few days ago, Livemint reported that in India, steel
output has seen double-digit growth rates throughout the fall of this year. Because
of rising consumption in the area, domestic steel prices in India have been
increasing.
“Higher output and higher
prices are two factors that should benefit Indian steel companies considerably,”
wrote Livemint’s Ravi Ananthanarayanan in the article.
Also this fall, Australia and
China have been debating about the issue of China dumping steel in Australia.
Many businesses in Australia have argued that China’s undercutting of steel
prices violate international agreements established by the World Trade
Organization. Anti-dumping tariffs are designed to alleviate this situation, which
is detrimental to local markets, but these tariffs also mean higher prices for
consumers.
As Tim Harcourt wrote for
Australia’s The Conversation last month, “While consumers may enjoy cheaper
products, local industry may argue that the imports are being used to drive
them out of business, and get monopoly power.”
For consumers, these
increases in price mean that it’s a good idea to purchase goods that utilize
steel sooner rather than later. Consumer goods that commonly use steel include:
·
Stainless
steel refrigerators, stoves, ovens and other appliances
·
Automotive
parts like exhaust pipes and grilles
·
Surgical
tools like forceps and scalpels
Construction parts like air ducts, elevators and
roof cladding
