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Whether steel is used for producing shoes, nails, forges, anvils, farrier tools or shoeing rigs, the ever-increasing price of steel is certainly having an impact on manufacturing costs and pricing.
Over the past 12 months, manufacturers in many industries have seen steel prices increase by nearly 80%, and even more with some specialty steel products. As an example, the price of hot rolled steel increased by over $400 per ton during a recent 8-month span and by as much as $250 per ton in a single month. In addition, several foundries and steel mills recently put into effect their second surcharge in 2 months for steel products, adding as much as 45 cents per pound to prices.
Adding to higher prices is the fact that iron ore prices have increased 71% this year. Two other crucial steelmaking ingredients, coking coal and scrap steel, have doubled in price.
A supplier outside the farrier industry recently told AFJ editors the current supply steel environment is the most inflationary he’s seen in 23 years. He describes it as a vicious, perpetuating cycle where steel suppliers raise prices at the drop of a hat, taking full advantage of steel scarcity issues.