Effective starting February 1, 2018, SCAFCO Steel Stud Company has increased prices on our products. In the interest of transparency, we believe you deserve an explanation for these changes.
Global and domestic factors are both at play. According to a recent AISI report, overall US steel imports rose by 18% in 2017 and held a 27% share of the market; however, partly due to antidumping cases against China, which manufactures approximately half of the worldwide steel supply, we have experienced a reduction in imported cold-rolled and coated steels.
SCAFCO purchases only American-made steel, but this does not mean we are unaffected. Limitations on imports from China and other countries come at a time when producers at home are raising their prices as well. Transportation costs continue to climb, and the ongoing federal Section 232 investigation into the potential national security threat posed by imported steel has driven all major domestic steel mills to announce increases.
Worldsteel forecasts that steel demand will see an increase of 3% (882.4 Mt) in 2018. We at SCAFCO are monitoring domestic and global market conditions, and will continue to keep our customers apprised of our response.
Thank you for your business and your continued support.