January 17, 2022
by Skyler Smith

Steel prices are continuing to cool throughout the US from their October Highs but currently remain elevated. The price drops come as European demand slows alongside the world’s largest steel consumer, China. China is looking to see a 5% decrease next year according to China’s Metallurgical Industry Planning and Research Institute and the number could go higher with the Chinese economy still seeing negative effects from the Evergrande default. High Iron ore inventories are also assisting in cooling the market as Brazil and Australia increase shipments of iron ore providing downward pressure on the raw material prices for steel. Fitch Solutions, among other analysts, expect that global prices have peaked and that U.S. steel prices will continue to lower in the coming year with flat steel expected to see the highest decrease in price.

This is great news for future industrial development as Salt Lake County’s industrial market remains undersupplied with vacancies staying under 3% for the majority of 2021. These price drops will help developers to complete the buildings the nation desperately needs with under 4% industrial vacancy nationwide being reported in Q1. Planning construction now could be especially important as projects of the recently passed federal infrastructure bill will soon have an opportunity to affect the supply and cost of steel. Utah’s rapid industrial growth and dwindling available land show there is no time like the present to begin projects in the Salt Lake Valley.

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