Steel’s massive rally is hitting all parts of the global economy

Carl Harris, who built homes for 36 years, said he was looking at two-month delays on refrigerators, stoves and dishwashers. Delivery times, which are usually two to three weeks, are now up to six months in many parts of the country.

The delay means Harris will not be able to install the equipment package to market the two-bedroom, empty nest home in Newton, just outside of Wichita, Can., Even though the rest of the home is ready. He said other builders in the area are also struggling to get plumbing, which must be in place before an occupancy certificate is issued.

“There is a lot of steel in equipment, so we’ve seen a big backlog of some equipment so we can close these homes,” said Harris, managing partner at Harris Homes in Wichita, on a phone call. “We see significant bottlenecks.”

It also becomes more expensive to drill the shale field as rising prices for steel, cement, and other supplies and services lead to higher costs for researchers, according to Citigroup Inc. Steel prices for the drill pipe used in new wells could increase by about 50% in 2021, Citigroup said.

Ford Motor Co. executives said on a conference call in the first quarter that raw material prices rose, particularly for aluminum, steel and precious metals. Commodities are expected to rise by $ 2.5 billion in the second through fourth quarters, “so that will hit us for the rest of the year,” said John T. Lawler, Ford’s chief financial officer.

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