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Just thinking the other day - with the world markets in a turmoil, production in China, US and Europe at 1950's levels, why hasn't the price of SS kegs come down? I guess this is pretty macro-economic thought, but shouldn't prices decrease when supply increases, especially on a world market like stainless steel?
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SS Prices
The prices are way down. If you adjust for the CPI, Stainless was actually below prices from the early 80's at the beginning of 2009.
Since supply was outrunning demand, manufacturers had to cut back to bring the price back up so they don't end up under water on their end. It takes some time to slow down a steel mill, smelter, mining and all the other bits in the chain that bring us steel. It is a bit like the pertrochemical industry. These are not industries which can be flipped on and off like a light. Like the economy, things have been put in place that will nudge them in the right direction and we will see the prices increase gradually and the economic engine slowly work its way back up to cruising speed. Let's say by 2011.
Cheers,
Otto
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