Thursday, November 20, 2008

Aluminium and Steel Price History

Additional data in furtherance of the following post:
JHSV Contract Awarded Well Over Budget

Aluminium costs into JHSV and LCS are about 50% of what they were as recently as last summer, and steel costs into LCS are about 25% of what they were as recently as last summer:


We are back to 2004 prices for aluminium:

The recent contract for the one JHSV is over budget beyond any legitimate reason.

Re: LCS and steel cost see:

We are also back to 2004 prices for steel:

Below is an interesting graphic on past steel demand by region on the world. Notice the U.S. demand under NAFTA and relatively how large the China demand is. The China demand for steel is what is dramatically falling right now. For what will be happening to China's economy, look for political unrest there within a year or two if these economic trends continue.

Aloha, Brad

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