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Harley Dude
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14,651 Posts
Discussion Starter · #1 ·
A thread on gun safes brought up the point that steel prices are skyrocketing! Why?

Steel is not rare, or in short supply. What the heck is with that. Is it because we have closed down most of our steel mills and its now coming from other countries? Are they just jumping on the copper, lead short supply bandwagon?

Anybody have a clue?
 

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Iron Maiden
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8,441 Posts
I'm guessing gas prices have got something to do with it. It seems to be the excuse for everything these days. Maybe the increase in gas is affecting the price of having the steel transported to the manufacturers?!?!?
 

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Chicago Pro-Gun Activist
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2,444 Posts
If you look at demand, then you can understand why the price of steel is going up. From being in China, there are two very distinct and clear occurances.

First is the huge increase in automobiles in the past 7 years. Thus the demand for oil and the surge in speculative market pricing. People see no end to the demand in China.

Second, the vast amount of construction not only along the seaboard but inland as well. This demand for steel is similar to the demand for oil. It is enormous and has no end in sight.

Remember one simple fact, it is estimated that between 20 and 60 million people migrate from the rural areas to the cities each month in China. That will help you to understand the unsatiable appetite the Chinese marketplace is showing to the world. China spent 50 BILLION USD on reconstruction and new construction for the 2008 Olympics.
 

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Pro Gun Advocate
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10,940 Posts
Uh, at the rate of 60,000,000 migrating to cities each month, that means that if the cities started with nobody in them, it would take less than 2 years for the entire popultation to move.
 

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Registered
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3,633 Posts
Steel has been rising in price for some time now. With our domestic ability to produce commercial grade steels pretty much kaput, we need to import. There are smaller domestic specialty forges that produce good alloys. I am a real fan of 4140 prehardened, but the prices for chromium and molybdenum also sky rocketing, it whacks everyone.

The bottom line is competition from China and India. These two countries are gobbling up everything they can. So it is sort of like oil. We have an increased demand, aggressive competition for the metals and we no longer have the ability to produce steel in any kind of huge quantities, prices just go up.
 

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Chicago Pro-Gun Activist
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2,444 Posts
Uh, at the rate of 60,000,000 migrating to cities each month, that means that if the cities started with nobody in them, it would take less than 2 years for the entire popultation to move.

You are correct. My Bad! I should have said that it is between 2,000,000 to 6,000,000. Sorry - got overzealous with the zeros when doing my math.

As an additional point of reference, they calculate that the acutal population of China is under reported by approximately 300 million. This would put the actual population somewhere in the neighborhood of 1.6 to 1.7 Billion and expanding at a rate of approximately 2% per year or 32,000,000 per year. SInce the early 1990's when freedom of movement became easier in mainland China, the estimated umber of people that migrated into the cities is approximately 240,000,000. The Chinese government expects another 400 to 500,000,000 to migrate into the cities in the next 10 to 20 years.
 

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Harley Dude
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14,651 Posts
Discussion Starter · #7 ·
I don't think there is any question who the next big superpower will be 50 years down the road!
 
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