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The construction industry is going through a series of price increases for a wide variety of construction materials including mill products. The result is an increase in many aspects of the cost of a project, not just the steel frame. For that reason it is necessary not to look at just the increase (or projected increase) in the cost of the steel frame, but at the overall cost of project.
It should be recognized that increases in the mill price of steel have only a small impact on the overall cost of the project. On a typical project, the cost of the fabricated and erected steel frame represents 10% to 12% of the overall project cost. Of that steel frame package, mill material accounts for only 20% to 30% of the cost. A 40% increase in mill material for the structural frame would result in only a 1.5% increase in project cost.
Structural steel is in abundant supply from both mills and steel service centers. Domestic demand for wide flange members in 2004 is projected to be 3.6 million tons against a domestic capacity of more than 6 million tons. Mill deliveries are based on available slots in rolling cycles that are averaging 6 to 8 weeks while service centers are delivering all shapes within a period of several days following placement of an order.
We encourage you to explore the identified resources. If you have further questions please contact an advisor in the Steel Solutions Center at 866.ASK.AISC or solutions@aisc.org.
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