The Effect of Rising Steel Costs on Construction Costs

摘要

The US, until 2002, was the largest producer and consumer of steel. Since 2003, China has surpassed that record. The US has to buy ore in the open market and with the weak dollar, it is costing more. Furthermore, 30 percent of steel production uses recycled scrap metal, which is also in short supply. The world, with the continuous US consumption and China's new appetite, is consuming more than it can produce; hence both ore and scrap metal are in great demand. US steel mills are aging. When Bethlehem Steel filed for bankruptcy, it had seven times as many retirees as it had active employees. Payment toward pensions was so steep that capital expansion suffered.