The Steel Index (TSI) daily iron ore reference price has increased more than 100% since March of 2009. Furiously punching away on our Adler 81S pocket calculator with vacuum fluorescent display, we were stunned to learn that a 100% increase is equal to taking last year’s spot price for steel, and then doubling it!
Despite a steel price levitation act that would make David Blaine’s mascara run, Paragon remains committed to keeping list prices unchanged for the remainder of 2010. Unless, of course, we change our minds!
Reasons attributed to rapid steel price ascent are:
- Massive spending by Chinese on steel-intensive infrastructure
- Summer reunion tour of 70’s alternative rock band Steely Dan
- Expectation of large infrastructure spending in India
- Superman heavily engaged in trading commodity futures via online brokerage account
- BlueRay DVD release of Steel Magnolias
Steel price increases are mentioned herein for a couple reasons:
- We’re attempting to garner goodwill from our valued customers by not passing on higher costs which in turn makes selling more difficult. In other words, we’re showing our mettle (please note clever use of homophone).
- Demand for steel worldwide is increasing. Perhaps, this is a leading indicator that our economy just might be shaking off the soggy conditions of the past 2 years.