Economy
December 3, 2017
Margins Tight on Secondary Steel
Written by Tim Triplett
Recent price increases on prime steel have pulled secondary steel prices up along with them, challenging distributors to pass the added cost along to their customers. Secondary steel products include coils that have defects or otherwise fail to meet the specs of the original buyer, but may be suitable for other uses.
“Our volume has been good, but we are definitely getting squeezed on the margins,” said Lisa Goldenberg, president of Delaware Steel of Pennsylvania, Fort Washington, Pa. “The consumer has not borne the brunt of the price increases; it’s the service centers that have carried the weight. We have not been able to pass them all on.”
