New sources of natural gas are having a direct effect on steel prices, at least out east.
In Pennsylvania, rich gas deposits in the Marcellus Shale is driving the demand for steel that is used in the mining and drilling equipment. At the same time, mills, like U. S. Steel’s West Mifflin plant, are switching over to that cheaper natural gas, which they claim will help reduce their costs in the coming years. While it’s not likely to have a fast impact here, it is a noteworthy and positive development.
Take a look at the
Wall Street Journal story here.
