Hurricane Katrina May Cause Steel Price Hike

September 8, 2005 — According to reports from the Wall Street Journal, the price of steel could rise by as much as 20%, as flooding in New Orleans has limited the supply of raw materials, such as liquid hydrogen and scrap. Concrete reinforcing bar prices are also expected to rise. The increase would be in addition to the roughly 20% price increase by steelmakers that came into effect September 1. The newspaper said that as buyers stockpile materials to avoid higher prices and shortages, prices could escalate as much as $80 a ton.

 

The Wall Street Journal reported major hydrogen producer Air Products & Chemicals, Allentown, Pa., said it cannot deliver liquid hydrogen to customers because of damage to its plant in New Orleans. The company said it is uncertain when it can restart production. The newspaper also said Steel Dynamics told customers it is suspending future orders of value-added products, such as cold-rolled, galvanized, and painted sheet-steel products because Air Products was its main hydrogen supplier.