[emersonbiggins]

...due to rising energy costs used to make said steel.

$this->bbcode_second_pass_quote('', 'A')rcelorMittal to Increase U.S. Prices by $250 a Ton (Update2)

By Dale Crofts
Enlarge Image/Details

April 16 (Bloomberg) -- ArcelorMittal, the world's largest steelmaker, plans to boost prices on some steel shipments in the U.S. by $250 a ton, or about 33 percent of current prices, to recoup surging costs for energy and iron ore.

The surcharge will be added to contracted orders of flat- rolled steel for shipment May 5 and later, according to an April 14 memo to sales personnel from D.G. Mull, executive vice president for sales and marketing. The Luxembourg-based company won't add the charge to spot sales or contracts that already allow prices to fluctuate, the memo said.

ArcelorMittal is trying to take advantage of soaring global demand to pass on higher costs for iron ore, the main ingredient in steel, and the energy to produce and ship the metal. U.S. prices for flat-rolled steel rose to $740 a ton in March from $665 a month earlier, according to Purchasing magazine.
...

[seahorse2]

As we all know, increasing oil prices have driven up inflation costs and thus, increased the costs of exploration. This news means that the costs of building rigs and associated infrastructure will continue to rise.

In the past it was believed that increasing oil prices would drive oil exploration and eventually bring down the price of oil with increased oil production. The fallacy of that may be this - that in the past, increased oil production came from easier and cheaper reservoirs on land. However, all the easy to reach oil is gone, and now increased oil production has to come from the more difficult/expensive deep waters or more expensive shale plays. Thus, the old belief that increasing oil prices leads to increased production and thus reduced prices may not be true today. It may lead to increased production, but I think it would be hard to say it also leads to decreased prices when the new production is coming from more expensive oil plays. And the cost of that more expensive oil has to be passed on.

I just wonder with these continued cost increases if it just means even the more expensive oil plays get to costly to produce at any price, simply bc the consumer couldn't afford it even if it were produced.

[Armageddon]

$this->bbcode_second_pass_quote('seahorse2', 'A')s we all know, increasing oil prices have driven up inflation costs and thus, increased the costs of exploration. This news means that the costs of building rigs and associated infrastructure will continue to rise.

In the past it was believed that increasing oil prices would drive oil exploration and eventually bring down the price of oil with increased oil production. The fallacy of that may be this - that in the past, increased oil production came from easier and cheaper reservoirs on land. However, all the easy to reach oil is gone, and now increased oil production has to come from the more difficult/expensive deep waters or more expensive shale plays. Thus, the old belief that increasing oil prices leads to increased production and thus reduced prices may not be true today. It may lead to increased production, but I think it would be hard to say it also leads to decreased prices when the new production is coming from more expensive oil plays. And the cost of that more expensive oil has to be passed on.

I just wonder with these continued cost increases if it just means even the more expensive oil plays get to costly to produce at any price, simply bc the consumer couldn't afford it even if it were produced.

[Twilight]

$this->bbcode_second_pass_quote('seahorse2', 'T')his news means that the costs of building rigs and associated infrastructure will continue to rise.

[emersonbiggins]

$this->bbcode_second_pass_quote('Twilight', ' ')If the commodities bubble carries on like this for another couple of years, I will not be surprised to see people sit on their hands until it goes away.

[Twilight]

The man in the street will be sitting on his hands in a year or two whatever happens. But would it not put the cat among the pigeons were a few of those vaunted "megaprojects" shelved because no-one could give the beancounters a straight answer about how much they would cost? I don't think we are far from that point.

[whereagles]

$this->bbcode_second_pass_quote('seahorse2', 'A')s we all know, increasing oil prices have driven up inflation costs and thus, increased the costs of exploration. This news means that the costs of building rigs and associated infrastructure will continue to rise.

[frankthetank]

They want to build a new stadium thing here in La Crosse at the university. The old one is crumbling and they want a new one. I personally could care less, but recently have raising the required funds (10million or something), they've had to go back and try to find an extra 2 million because all the bids came in WAY higher then they originally planned.

You would think that this would put the brakes on a lot of projects.

edit:
On another note, my brother in law was looking for a cheap car and i found one for like $900 and it runs. I'm told him "look, the god damn thing is probably worth $300 in scrap alone!".

[emersonbiggins]

$this->bbcode_second_pass_quote('Twilight', 'T')he man in the street will be sitting on his hands in a year or two whatever happens. But would it not put the cat among the pigeons were a few of those vaunted "megaprojects" shelved because no-one could give the beancounters a straight answer about how much they would cost? I don't think we are far from that point.

[Twilight]

$this->bbcode_second_pass_quote('emersonbiggins', 'P')ersonally speaking, estimates in the construction industry used to be good for at least 90 days. Now, they're hesitant to sign off on anything over 2 weeks.

[emersonbiggins]

$this->bbcode_second_pass_quote('Twilight', '')$this->bbcode_second_pass_quote('emersonbiggins', 'P')ersonally speaking, estimates in the construction industry used to be good for at least 90 days. Now, they're hesitant to sign off on anything over 2 weeks.