Steel Prices Soar - Panic Buying Sends Steel Prices to New Record Highs

Today saw steel prices soar to record highs as atechnologies, but not at safeguarding them.
report released by world steel producersMistakes were made. While the rest of the world
confirmed worries that current production hashas adapted, refined and made full use of the
failed to keep pace with world demand. Onenew technologies, the US has not. More than 30
industry official, who did not wish to be named,years have passed while the US continues to sit
expects the panic buying to continue and notedon the largest oil reserves in the world. We have
that "for the past decade, prices of scrap steelnot built a refinery, a steel mill or nuclear plant
fluctuated between $50-$80 USD/ton. Late lastwhile the rest of the world has - and good ones
year, that price doubled to $150 -$200 USD/ton.at that. Yes we have the resources, but they not
By March 2008 it doubled again to $345USD.do us any good unless we utilize them.
Today's surge to $865 USD/ton reflects aWhile America sits idly by, the rest of the world
depletion of steel reserves to historic lows andhas left us in the dust. The US has dropped from
the inability to increase production to keep pace#1 to the 3rd largest producer of steel while
with world demand." One economist today notedJapan, a country with limited resources of its own,
that steel at these price levels will have ais now #2. We've regressed from being one of
devastating effect on consumers worldwide. Thethe largest producers to becoming the largest
world's economies are built on steel. Without it,importer of crude in the world. The oil we drill we
the machine breaks down. Right now there simplyship to the mid-east or to countries like Japan to
isn't enough to go around.refine, only to ship it back to the USA because
Where will it stop? Nobody seems to know. Afterwe don't have the capacity or the refining
today's activity, many feel certain that morecapability in the refineries we do have to refine
increases are ahead. How high will it go?the types of oil we do pump.
Well, it depends.We have the brightest minds in the world, and
As the old' saying goes, there's good news andwere responsible for bringing nuclear energy to
bad news. First, the good news. The abovethe world. Unfortunately, France now holds the
headline isn't real. The story is fiction and thetitle of world leader in this technology. They are
record prices described haven't actually happenedenergy independent, building for themselves and
yet. The bad news is that word "yet." You see,the rest of the world modern nuclear plants that
while fiction now, a good part of what transpiresgenerate energy without incident or accident. The
in this story is slowly becoming reality as weUSA, once known as the nuclear knowledge
speak.center, no longer has people with the knowledge
Scrap steel, which was cheaply priced for years,to build a plant even it we wanted to. Most of
really has risen to over $345.00/ Ton within thethese people are too old or have moved on to
past few months. Reserves are being tapped.the countries that will utilize their knowledge and
Worldwide demand for fuel, metals and foodknow how.
staples are creating shortages, and prices onEnvironmental activists must acknowledge that
these items continue to increase. China's recentwhat happened in the past is past. It's 2008 and
economic expansion has had a huge impact onthe technologies of today dwarf those that built
commodity supplies & prices. The samethe systems that caused concerns in the past.
supply/demand fundamentals that have drivenLook at other countries that didn't go into a
crude prices to new highs are now driving steelcocoon, countries that have taken the
prices higher.technologies of today and adapted them to
While demand for crude increases worldwide, USimprove the processes and safeguards of the
policy has been to conserve, rather than to1970's.
increase supply. For years the strong dollarIf France can produce safe and issue-free nuclear
enabled the US to rely on the rest of the worldplants I think we can do the same here in the
to produce discounted resources that we wouldUSA. If other countries can drill oil and ship and
import to meet our nation's growing demand. Therefine it without causing catastrophic effects, then
resulting complacency resulted in a reliance onI think we can too.
aging systems without any new additions to takeTo continue to focus on the problems of 30
their place. Over 30 years have passed since ayears ago and say that the same issues still exist
major nuclear power plant, oil refinery or steel millis religion, not realism. In the end, we are
has been built in this country. The last ones weresponsible for the situation we find ourselves in
did build, which were state-of-the-art in their time,today because of our own selfishness and greed.
are becoming aged and antiquated and are noWe must stop expecting others to do for us
longer capable of producing enough to sustainwhat we refuse to do for ourselves. In addition,
current demands.we must stop criticizing them if they can't do it
As the once mighty Yankee dollar loses its luster,quickly or cheaply enough. And then we wonder
our ability to import shortfalls cheaply is no longerwhy the rest of the world thinks Americans are a
the viable option it once was. To make mattersbunch of pompous, self-centered morons
worse, the worm has turned in the sense thatWe need to get with the program and show the
the recent strength of the Euro and the dollar'sworld we are not self centered-morons. We are a
weakness are slowly turning the USA into annation rich in resources, but we misuse and abuse
exporter where it once was the dominantthem. With all our knowledge, all our resources
importer. The result is an ever increasing demandand all our abilities, we proudly pat ourselves on
on our already limited resources.the back for building ethanol plants that burn the
The shortages and resulting price increases wefood we grow to make energy that we already
are seeing today are not an overnight occurrence.have in the ground but refuse to drill for. There is
The US has more untapped natural resourcescurrently a shortage of rice and other foods in
than any country on the planet. As one of themany parts of the world. We may think we're
largest consumers of the world's resources, onecool and trendy and GREEN building ethanol plants
would think we would be thinking of ways to useto burn food to power our vehicles, but the rest
what we have. Yet, for the past 30 years, theof the world thinks we're fools.
US has adopted a policy of using the resources ofIn the end, it's a question of supply and demand.
others while preserving our own, treating themAs world demand increases for the resources our
like holy relics that should not be touched. Insteadplanet has to offer, the supply needs to keep
of finding ways to tap known resources, the USpace or some will have to use less. The best way
for the past 30 years has relied on the rest ofto allocate limited supply is to eliminate some of
the world to do it for us.the demand. This is done through prices. As prices
Americans feel that their appetite for foreignrise, demand slows. Some will pay the new price
resources should be met on command. The worldand some won't. Prices rise until the supply and
should not only produce whatever we want, butthe demand meet equilibrium, where what is
do it at a low price. So, if we have a gasdemanded meets what is available.
shortage, it's the Middle-East's fault. Drill more wellsToday, prices continue to rise because demand is
but do it on your land and off your shores; buildstill greater than the supply. Other countries claim
more refineries but do it in your cities. We can'tthat the US needs to start contributing to world
do it in America because it's dangerous, it's badsupply and not depend on everyone else to make
for the environment, and it will pollute the oceansup the shortfalls. The US continues to refuse to
and destroy the planet, so you do it for us.do so. Building wind mills, solar panels and
Somehow, if another country does it, it's different.BURNING OUR CORN AND BEETS IS NOT THE
If prices go up in the process, however, the restANSWER.
of the world is being greedy. These countriesThere is hope, however. As prices rise more and
need to find a way to keep up with our demand.more, Americans are changing their attitudes.
They need to expand and build but do it on theirMany now agree that we need to start
own dime, quickly and efficiently and withoutimplementing real programs for utilizing our
raising their prices. Anything less and we'll beavailable resources IN A SENSIBLE MANNER. We
outraged. How dare they? Unfortunately for theneed to once again take the lead. We need to drill
US, 30 years of neglect is not something that cannew wells, build new refineries and harness the
be repaired anytime soon.new, safer nuclear energy. We need to update
50 years ago, the USA was #1 in that we hadour old mines and mills, and catch up to the rest
the biggest and baddest of everything. We wereof the world.
building nuclear plants and had the world's largestUnfortunately, 30 years of ignoring the problem
coal mines, the biggest oil companies and the bestcannot be undone overnight. Eliminating the red
refineries. The iron range was cooking withtape and writing rules and regulations that will
activity and the country was producing steel insafeguard our systems without making them too
the biggest, most efficient steel plants in theexpensive to build will take time. Building these
world. Pittsburg, Pennsylvania was the steel capitalsystems and getting them manned and producing
of the world, and the USA was the industrialwill not happen overnight. While we can fix the
engine of the planet that everyone else looked toproblem that took 30 years to create, we will
as the model for building their own economies.have to live through a few more years until we
The 1970's was a time before computers, theturn things around. For now, supplies will continue
internet and e-mail. Cell phones were the size ofto fall short in a world where demand continues
suit cases and a new technological age was in itsto rise. Where it will all end is impossible to predict,
infancy. Nuclear energy had its growing pains. Thebut one thing is certain. Prices are high and heading
drilling and transportation of oil were still beinghigher, with nobody knowing where they will end
done old school. We were adept at creating newfor now.