A year ago, the demand for bathroom tissue skyrocketed, then it was hand sanitizer. Fast forward to today and it seems as though every product imaginable is backordered in some fashion.
Steel is no exception. Why is this? Limited steel supply, escalating prices and increased demand are all factors playing roles in the disruption.
Steel mills that shut down furnaces amidst low demand due to the pandemic have been slower to ramp up production, thus increasing the production cycle of steel-based goods. Due to demand increases, U.S. steel prices have increased. Companies that turn to Chinese steel imports are left with logistical issues and container shortages for shipping, with supply running thin.
Challenges in the steel industry trickle down to gas cylinder production; including costs and availability in the market space. Suppliers are seeing trends that suggest shortages in both steel and aluminum cylinders. If inventory continues to be volatile, we expect cost changes to continue. We anticipate these trends to continue to impact gas cylinder production through the summer months.