Why the price of steel and concrete will continue to rise

Chinese construction continues to put pressure on world steel and cement prices. Indian demand, especially for concrete, is beginning to enter the picture. At the same time, increases in the price of crude oil put pressure on the price of mining and processing raw materials. The manufacture of both steel and concrete produces large amounts of CO2. Attempts to limit CO2 output will inevitably effect both the manufacturing costs and the availability of cement and steel. Producers will be forced to either pay for new post carbon technologies, or pay a tax or fines for the right to emit CO2.

In addition to concrete and steel there has been a dramatic increase in the prices of copper and nickel, as well as the price of finished metal products. The New York Times reports that the price of high-pressure piping for steam has increased by 60 percent in the last two years. Wind electrical generation has been also dramatically effected by the inflation in materials cost. Puget Sound Energy reports that in 2006 it paid from about 8 cents to 10.5 cents a kilowatt-hour for wind generated electricity, up from 2004, when it paid 4.5 to 6 cents.

Demand for steel concrete and other materials for post-carbon electrical generation facilities will directly compete with Asian demand. How long will the Asian development boom last? Don't count on it ending before 2050, which many scientist feel is the last chance deadline for controlling the rise in atmospheric CO2.