Steel prices soar, causing shortages and trouble for manufacturers (2021/07/19)
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  • 英文 English 
    Steel prices soar, causing shortages and trouble for manufacturers (2021/07/19)

    Strong global demand for steel has caused prices to soar. That's led to limited availability of the crucial metal, and problems for manufacturers all across industry. Even related materials such as iron ore are surging in price. And economists say that as the world emerges from the coronavirus pandemic in 2021, prices will stay high.

    This machine produces over 100 screws every minute. Orders are flooding in and workers are on their toes.

    Global steel prices have gone up and that means screws are valuable commodities. Steel wire used to be NT$32 a ton. Now it’s NT$42 to NT$45. Materials used to make molds and paper packaging have risen in value too, meaning the overall price of screws has jumped 15-20%.

    Screw manufacturer
    We count how many pieces they bought, and then measure the weight of each individual piece. One bag is about 30 kilograms. The costs involved are considerable.

    Screw manufacturer
    Last month we adjusted the price by NT$8-9. A kilogram of galvanized iron used to be a-hundred-and-something dollars. Now it’s over NT$200. Copper used to be three-hundred-and-something, now it’s almost NT$500. So the second half of the year will be hard. We have the orders, but we can’t get hold of the material. I was supposed to deliver my first batch of orders in March, but I only completed it at the end of June.

    The surge in steel prices has really hit manufacturers. Prices are high and shortages are increasing. It takes at least two or three months for new orders of steel to come in.

    Darson Chiu
    TIER researcher
    Rising prices will affect everything, from more raw materials like iron ore, steel billets and sheet steel to more processed commodities like manufacturing equipment and transportation tools, screws and nuts and so on. Basically we expect these prices to keep rising until the end of the year.

    This economist says the global economy will bounce back as COVID recedes, and steel demand will keep rising. But for some in the industry, that won’t be plain sailing.
    中文 Chinese  





    “上個月又調8塊9塊,一公斤鋼材, (白鐵)本來100多塊,現在漲到200多塊,紅銅本來是300多,現在漲到快500,所以後半年也是很辛苦,我們有單,可是買不到原物料,我的第一批單子,原來是3月要交,我6月底才全部交完”


    [[台經院研究員 邱達生]]

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