Just wanted to put out and FYI.

I know a lot of people have voiced concerns about the price that they paid for their trucks, but I figure within the next 12 to 18 months maybe even sooner you will be very happy with what you paid.

I deal a lot with the construction industry and the price of steel is skyrocketing. China is buying up all of the steel they can get their hands on. I know of a couple of contractors that have had to rebid their jobs because of the increase of the price of steel. If you try to call for a price of a steel building right now they will not quote you unless you commit to buy right away.

I don't see how the car industry can keep from increasing the price of their vehicles.

I couldn't guess how much more people will be paying for the trucks in the near future. But I would not be surprised if it is from 10 to 20% more.

So for any of you that are waiting just because of the price, it’s not going to get any better.


Just an FYI

Den

 

I was wondering the same thing. I am in the commercial contracting business in southern Louisiana and between the cost of fuel and the steel prices going through the roof we'ff be working for china or the arabs before long. But it makes me feel good to know Iraq will be O.K. while we are all unemployed. Ford will have to increase the cost of their products soon. I was told that our steel building prices could as much as triple by late summer. We just don't need this right now!!!!!!!!!!!!!

 

I'm fairly certain that Ford and other manufacturers manufacture their own steel. This has been the practice at the Rouge Plant in Detroit for some time. Where is the shortage? At the raw materials level or processed steel?

 

IMO, this is a short-term spike in the price of steel. Fortunately, the politicians have so far let it work itself out in the free market, so I have hope it will correct itself in the near future.

BTW, a recent study reported that we pay more for health care costs for present and retired union workers than we do for steel in a new vehicle. The price tag per vehicle is around $1400 I believe.

 

eauclaire, the increase is at both the raw material and finished product so you will most likely see a modest increase regardless of whether the big 3 mfg their own steel. The Chinese are also buying up all the copper as well.

Billsco, you are probably right about benefits for the union workers costing more than the steel...

 

Far out.. time to start a construction business in China.

 

You're 100% CORRECT. Steel prices,which are UP OVER 30% yr-to-date are now threatening the whole construction and manufacturing arena. Health care costs, if one can imagine this, now account for MORE in a vehicle than does the steel. I believe the average steel amount in a vehicle is 2K pounds. So yes, between RISING health care costs and STEEL costs things are only going to get WORST.

 

Well I work for a steel producting company (Ispat Inland). My line (EGL) makes 90% Ford Material. So no the big 3 doesn't own the Steel companies. Rouge Steel was sold to a Russia Co. last year. Also the big 3 sign contracts for steel prices, to protect them and us if the prices go wild up or down. Some Steel Cos. have try to put a $50 a ton fee on their steel but they aren't getting far with it. So the Big 3 are paying the same price as they were a year ago. The Steel Cos. are hurting cuz the prices are up but raw material is hard to find. We are even tearing down old lines to get the steel out of them. Scrap steel is high in price and hard to find. So if Ford raises their price because of steel prices its BS.

 

From your lips to God's (and everyone else's) ears!

 

Steel Dynamics denies breaching contract with GM

NEW YORK, March 25 (Reuters) - Steel Dynamics Inc. , the target of a lawsuit by General Motors Corp. , denied on Thursday it violated a contract to deliver steel to the automaker at previously set prices.

Steel Dynamics, one of several U.S. steelmakers that has slapped big surcharges on customers to offset rising steel prices, argued it is not obligated to give General Motors "the steel it wants at the price it wants to pay."

Steel Dynamics, based in Fort Wayne, Indiana, said that the amount under dispute with the auto manufacturer is "not material" and amounts to less than $4 million before taxes.

A spokesman for General Motors declined to comment on Thursday.

Steel Dynamics, like other steelmakers, boosted its earnings outlook recently because of surging demand, fueled by China, and higher prices, which have put pressure on steel customers such as auto makers and construction companies.

Steel companies have turned to surcharges, which they say are necessary to offset rising costs of scrap metal and other raw materials.

In the lawsuit, GM says that Steel Dynamics breached a contract to sell the company about 50,000 tons of steel during 2004 at already established prices. General Motors has said it is currently paying the higher prices for steel, but it is suing to return the prices to previous levels.

The automaker also recently filed suit against a Textron Inc. unit that raised prices on steel fasteners it supplied to GM.