Yet even the larger suppliers aren't fully immune to the problem. Contracts cover only a set number of barges. Adding salt to the wound is that the increases came during the summer months this year. As a result, many metallics suppliers not only must pay higher freight rates but also must scramble to get available vessels.
Transportation also is at the root of another market worry.
Deregulation, as promised, has allowed for increased interregional, nationwide competition among metallics suppliers. Shipping scrap from either coast to inland sites was prohibitively expensive until this year. It's uncertain whether this material will find permanent homes inland, however. Export scrap historically has been deemed inferior to that required by domestic mills. But if you want usable, quality scrap, you'll have to pay for it.