Steel prices - Yikes!

[TractorGuy]

Price gouging and deceptive advertising is the American way.

I was looking at prices on the Chinese mower I bought 2 years ago. The very day the steel tarrifs went into effect the price went up $300. As much as I like the store that sells them I can't see how they justify raising the price that high on existing stock.

 

[Jchonline]

When your "allies" continually rob you but expect you to give them the deals that benefit them but screw you, they show their true colors. I spent a considerable amount of time overseas listening to our "allies" continually bash the U.S. while enjoying our military protection and financial resources on a daily basis. It's about time they learned we're not going to continue giving handouts and paying the bills they incur. Kind of like a kid who wants everything but doesn't want to work for anything.

Agree. I also agree with others that we cant tariff raw steel imports without also trying to equalize final product imports. We have to do both or it doesn稚 work. It would be nice to get back to a place where we dont make “disposable” products. Where we pay more for something, but it lasts much much longer.

My other big picture hope is that we increase domestic steel manufacturing capabilities to not only meet demand, but also spur economic growth.

 

[sea2summit]

The big picture is to be better to your allies than your enemies (not the other way around).

China is not if that痴 what you mean.

 

[The Fred]

When your "allies" continually rob you but expect you to give them the deals that benefit them but screw you, they show their true colors. I spent a considerable amount of time overseas listening to our "allies" continually bash the U.S. while enjoying our military protection and financial resources on a daily basis. It's about time they learned we're not going to continue giving handouts and paying the bills they incur. Kind of like a kid who wants everything but doesn't want to work for anything.

Where is the thank-you button.

THANK-YOU for your proper response and thank-you for your service.

Regards, Fred

 

[Snobdds]

Predatory pricing. There is no mathematical explanation for a 50-70% increase.

The suppliers are shooting off their nose to spite their face. It will catch up with them and they will be forced to lower prices when demand dries up at these prices.

 

[Ritothebull]

If we had leaders in this country that dealt with these issues 30 years ago we wouldn't be having to deal with such huge problems now.

 

[houstonscott]

If we had leaders in this country that dealt with these issues 30 years ago we wouldn't be having to deal with such huge problems now.

Well, that’s changed drastically with the election of President Trump.

 

[Snobdds]

If we want to continue to be the leaders of the free world, we have to get our financial trade house in order. It would have been death by a million pricks.

The people screaming the most are only looking through the short term view prizm. Trade is a long term and should be viewed as such...

 

[Ortimber]

I own a machine shop geared for making aerospace parts.

The price increases we are seeing are hurting the little guy (me).

Our margins are already thin, and adding the new cost of raw material is making it more difficult to compete. Among the other challenges such as insurance costs and skilled labor shortages, we have a lot on our plate to contend with.

No one said this was going to be easy!

 

[CincyFlyer]

Even with the tarriffs it shouldn't jump 50 - 70%, simply price gouging I would say.

If people will pay the higher price, it's merely free market economics, not gouging. In fact, there's never a case for using "gouging"; you can simply not pay.

 

[tkevan]

...skilled labor shortages...

If we would have had leaders in the past that addressed trade issues, you wouldn't have a skilled labor shortage. But allowing governments to protect their own labor industries, while driving ours out of business, is what as hurt us over the decades. My Ram 3500 was produced in Mexico. Their percentage of US sold autos went from 3% to more than 20% since NAFTA. Great for prices, not for USauto workers. My next Ram 3500 will come from Warren Truck, as FCA moves 3500 production back to Michigan from Mexico.

 

[bcp]

Price gouging and deceptive advertising is the American way.

I was looking at prices on the Chinese mower I bought 2 years ago. The very day the steel tarrifs went into effect the price went up $300. As much as I like the store that sells them I can't see how they justify raising the price that high on existing stock.

Probably so they can replace it with one that costs them $300+- more.

Bruce

 

[newbury]

I own a machine shop geared for making aerospace parts.

The price increases we are seeing are hurting the little guy (me).

Our margins are already thin, and adding the new cost of raw material is making it more difficult to compete. Among the other challenges such as insurance costs and skilled labor shortages, we have a lot on our plate to contend with.

No one said this was going to be easy!

You just need to find a supply line that gets exemptions and will pass them down to you.

 

[Snobdds]

I find it odd that end users are not questing the huge overnight price hikes. If my business has a raw material that went in price 50-70% overnight, you could bet we would be sitting with the managers of that supplier asking a lot of questions. The pressure for them to explain their increase would be intense. If that means finding a new supplier that does not predatory price, so be it.

 

[dragoneggs]

I find it odd that end users are not questing the huge overnight price hikes. If my business has a raw material that went in price 50-70% overnight, you could bet we would be sitting with the managers of that supplier asking a lot of questions. The pressure for them to explain their increase would be intense. If that means finding a new supplier that does not predatory price, so be it.

OP here... Yes, this was my thought too. My local metal supplier is 'small potatoes' and partly why I posted my question in the first place. For you metal fabricators, are you seeing price hikes already? I did not intend this to become political.

 

[Thomas]

Better make room in your shed/garage for piece of steel you may have...even auction prices are getting high,

 

[cdb2]

If people will pay the higher price, it's merely free market economics, not gouging. In fact, there's never a case for using "gouging"; you can simply not pay.

That's right. Price signalling, how the free market coordinates resource allocation.

 

[D2Cat]

You guys are talking about steel prices, have you notice of Labor Day weekend gas became more expensive? We're trained to roll with it!!

 

[John_Mc]

As I see it, the big picture is, a handful of domestic steel makers get windfall profits from a partial monopoly, at the expense of many many domestic manufacturers that use steel and cannot compete very well against untariffed goods made from world price steel overseas. And also at the expense of a nation of consumers. I am looking for a silver lining but not seeing it.

Yep, and just like every other time we've tried tariffs to protect steel, we've ended up costing far more in downstream jobs than in jobs saved in the basic steel industry.

 

[John_Mc]

You need to realize out money is becoming more and more worthless every week because its being devalued to try to pay off our TRILLION dollar dept to overseas countries.

We should also put a return deposit on shipping containers to get money for their stockpiling. The center of gravity of the earth is shifting because of all the containers piling up over here.

But then, I suppose all of you complainers would rather have US workers loose their jobs and US companies go out of business instead of the Chinese. No go buy a Chinese tractor and STFU. Don't ask here afterwards where you can buy a crankshaft for it.

You do realize that the tariffs on steel are hurting domestic tractor manufacturers and helping overseas ones, don't you? The tariffs on steel are raising the costs for domestic steel users dramatically, while foreign tractor manufacturers still have access to cheaper raw materials, and can ship their tractors here without paying any tariff.

... and before you suggest adding tariffs to tractors, that does not solve the problem, it just makes it harder for farmers and other tractor users to compete in an international market.