A steel mill shuts down because it can't compete with its peers across the ocean. Another cuts back on production because demand is down. A foreign country experiences a building boom and an already depleted market funnels more steel to this emerging marketplace. Demand increases, but the dollar weakens on the global market.
Any one of these events may not cause too much change in the cost and availability of equipment made of steel, but taken together they can have far-reaching economic results. Equipment manufacturers in the United States have kept an eye on rising steel prices in 2004, and the effect of increased steel costs can be seen in many domestic industries, including the manufacture, distribution, and sale of HVAC equipment.