Hurricane Harvey effects could restrict steel, scrap supplies

The unprecedented destruction resulting from Hurricane Harvey’s assault on the US Gulf Coast region could tighten steel and scrap supplies and put upward pressure on prices, Metal Bulletin sister title AMM has heard.

“Harvey will have some sort of an effect on steel supply because of all of the steel that is down in [the Texan city of] Houston,” a Midwestern USA steel distributor predicted. “I expect that at least 60% of the carbon steel in Houston will end up being claimed [for insurance]. Even 30% would be a huge number.” “Non-prime [material] will come out of the Houston area due to water damage – that’s a given. Ships at sea will need to divert to other ports of entry,” a non-prime steel dealer said. “There’s going to be a lot of tear-downs and a lot of building work that needs to be redone,” a mill source said. “Ultimately, the rebuild will use a lot of steel – sheet, plate, angle, beam, tubing, casting, the whole spectrum. Think about the infrastructure, the pumps, the electrical poles that will need to be replaced.” After Hurricane Sandy hit...

Published

Grace Lavigne Asenov

August 31, 2017

22:15 GMT