Economy
March 18, 2018
Afraid of Heights? Lofty Steel Prices Make for Risky Business
Written by Tim Triplett
When steel prices rise, so does the credit and inventory risk for mills and service centers. When steel prices rise by 40 percent, as they have in the past year, the risk puts smaller players at a big disadvantage.
Service centers have been cozying up to their bankers to get extended lines of credit, some so they can take full advantage of the opportunity in the steel market, others in the hope they can maintain even the same level of inventory and sales. “People are running out of their bank line, they are running out of credit insurance, they are up against their limit,” said Lisa Goldenberg, president of Delaware Steel of Pennsylvania.
