Raw coil steel going over a dollar a pound. Damn. Yeah, theft is going to rise.
Steel is somewhere over half the weight of even a modern car. Compared to any other material, though, it's cheap. Even at a buck a pound, it's still not much over 5% of the cost of a car.
Where it hurts more is things like bridges and rails. Mainline railroad rail is somewhere between 100 and 150 pounds per yard. So, you're looking at somewhere between $75 and $150 a *foot*, just for steel (after shaping and transport) for a rail track. Half a million dollars a mile, just in the steel.
PeakOil is You
World's largest steel maker to increase prices by 60%
Re: World's largest steel maker to increase prices by 60%
by lawnchair » Mon 30 Jun 2008, 18:18:33
At 1% annual growth, human bodies will incorporate every gram in the observable universe in approximately 10,170 years.
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lawnchair - Tar Sands
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Re: World's largest steel maker to increase prices by 60%
by frankthetank » Mon 30 Jun 2008, 18:19:16
I noticed on my Ford Focus that the intake is PLASTIC. Don't know why, but one can only think that they saved some money vs aluminum intake or whatever else they make them out of.
Car makers are going to have to get VERY creative to cut out more steel!
Car makers are going to have to get VERY creative to cut out more steel!
lawns should be outlawed.
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frankthetank - Light Sweet Crude
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Re: World's largest steel maker to increase prices by 60%
by setag » Mon 30 Jun 2008, 19:19:10
$this->bbcode_second_pass_quote('lorenzo', '
')
Apparently, the price hike is only for "automotive steel". (But I can't imagine the other types of steel not increasing equally).
')
Apparently, the price hike is only for "automotive steel". (But I can't imagine the other types of steel not increasing equally).
Thank you, lorenzo.
The hike is just for automotive steel. Automotive steel is higher in cost than other steel markets. They have to be blended by milling or thermal treatment. There are probably 14 or more different strengths of steel used in automobile making and the more expensive the car the stronger the steel. The mix of new materials and alloys is growing, but for now there is nothing to beat the steel.
It appears to me, this increase is simply a result of supply and demand. The demand coming from China and India. It should be noted India can produce Automotive steel for less money than China.
http://english.people.com.cn/90001/90776/90785/6438573.html
09:18, June 29, 2008
ArcelorMittal establishes auto-use steel JV in China
ArcelorMittal, the world's leading metal and mining company, is investing in China to establish a new automotive-oriented steel joint venture in the central Hunan Province.
The new company was expected to produce 1.2 million tons of automobile steel sheet annually, ArcelorMittal's China office told Xinhua here on Saturday.
ArcelorMittal, the Hunan-based Valin Group and Valin Steel Tube and Wire Co., Ltd. signed a cooperation contract on Friday for investing 5 billion yuan (725 million U.S. dollars) to set up the Valin ArcelorMittal Automotive Steel.
ArcelorMittal, Valin Group and Valin Steel Tube and Wire hold a stake of 33 percent, 33 percent and 34 percent, respectively, of the joint venture scheduled to turn out products by the end of 2010.
Lakshmi Mittal, chairman and CEO of the Luxembourg-based steel titan, said the move was part of its global and China strategy, aiming to better serve both global as well as domestic automotive clients through offering high value-added products with the support of ArcelorMittal technology.
Li Xiaowei, chairman of Valin Steel Tube and Wire, one of China's top 10 steel makers, said the company's development was boosted by the technological platform jointly set up with ArcelorMittal. He added it was improving the product mix and targeting high-end products.
The China Association of Automobile Manufacturers (CAAM) predicted the steel automotive application would reach 12.55 million tons this year nationwide and possibly climb to 21.76 million tons by 2015.
CAAM said although the country's top steel manufacturers, including Baosteel and Angang Steel, had started producing auto-use steel products, China still needed to import a large quantity of high-tier steel products, boosted by its surging domestic auto demands.
Dirk Matthys, CEO and country manager of ArcelorMittal, forecasts that the total number of vehicles in China will rise from the current 10 million to 18 million in 2017.
ArcelorMittal also has a stake in the Hong Kong-listed China Oriental Group Co. Ltd., a domestic iron and steel maker.
Source: Xinhua
Sorry about the beer, man. That really sucks!
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Re: World's largest steel maker to increase prices by 60%
by copious.abundance » Mon 30 Jun 2008, 21:17:02
$this->bbcode_second_pass_quote('Specop_007', 'I') didnt think there was that much steel in a car??
Cars shmars.
If you really want to know where all the demand for iron ore and steel is coming from over the past several years, you need to click on the following links.
WARNING! Most of these links are extremely picture-heavy! Even if you have a super-duper cable connection, some of them will take a while to download.
These are highrise projects and construction in a selection of Asian cities. The scale of construction going on there - especially in China - is staggering. We're talking a lot of steel here!
I started this a while ago and intended to add cities in North America, Europe and elsewhere, all of which also have lots of construction going on, but this should give you an idea.
CHINA - High-rise projects under construction, proposed or recently completed.
--> CHONGQING <--
--> SHANGHAI <--
--> HANGZHOU <--
--> GUANGZHOU <--
--> TIANJIN <--
--> SUZHOU <--
--> WUXI <--
--> SHENYANG <--
--> DALIAN <--
--> BEIJING <--
--> SHENZHEN <--
--> WUHAN <--
--> CHENGDU <--
--> NANJING <--
--> MACAU <--
--> China SUPERTALL projects <-- These are structures over 1,000 feet. Includes overlap from threads above.
SOUTH ASIA - High-rise projects under construction, proposed or recently completed.
--> MUMBAI, India <-- Bombay
--> PUNE, India <--
--> KOLKATA, India <-- Calcultta
--> CALICUT, India <--
--> BANGALORE, India <--
--> DHAKA, Bangladesh <--
SOUTHEAST ASIA - High-rise projects under construction, proposed or recently completed.
--> PUTRAJAYA, Malaysia <--
--> JAKARTA, Indonesia <--
--> MANILA, The Phillipines <--
--> KUALA LUMPUR, Malaysia <--
--> PATTAYA, Thailand <--
--> MONT'KIARA, Malaysia <-- A suburb of Kuala Lumpur
--> PENANG, Malaysia <--
--> VIETMAN overview <--
--> PETALING JAYA, Malaysia <--
--> CEBU, The Phillipines <--
--> BANGKOK, Thailand <--
--> SINAPORE <--
EAST ASIA - High-rise projects under construction, proposed or recently completed.
--> SOUTH KOREA overview <--
--> TOKYO, Japan <--
--> OSAKA, Japan <--
--> SONDO, South Korea <--
--> TAIPEI, Taiwan <--
Stuff for doomers to contemplate:
http://peakoil.com/forums/post1190117.html#p1190117
http://peakoil.com/forums/post1193930.html#p1193930
http://peakoil.com/forums/post1206767.html#p1206767
http://peakoil.com/forums/post1190117.html#p1190117
http://peakoil.com/forums/post1193930.html#p1193930
http://peakoil.com/forums/post1206767.html#p1206767
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copious.abundance - Fission
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