Why are steel tanks so expensive in the US

[Lemonade]

They can not be out of steel.
It's not Soviet Union, you need steel, you go and buy it at market price.

Probaly just didn't realize the E-series going to sell that well, so can hardly keep up with the demand.

 

[yknot]

They can not be out of steel.
It's not Soviet Union, you need steel, you go and buy it at market price.

Probaly just didn't realize the E-series going to sell that well, so can hardly keep up with the demand.

Actually, you could be. If the steel is a certain alloy that does not have a big demand then their supplier may not be be willing to run a batch right now. I seriously doubt that PST can supply their own steel. What they are also telling you is that they are willing to wait because they may not like the current market price. I've dealt with some fairly large steel users and can tell you that a lot of steel alloys aren't just sitting on a shelf. All but the largest users also can't call a steel producer directly- things come thru distributors that have minimum order restrictions themselves.

 

[cool_hardware52]

I can second that thought YKnot. I've been quoted 38 weeks on some materials. I build a new kid in 36 weeks...............



Tobin George

 

[Lemonade]

Actually, you could be. If the steel is a certain alloy that does not have a big demand then their supplier may not be be willing to run a batch right now. I seriously doubt that PST can supply their own steel. What they are also telling you is that they are willing to wait because they may not like the current market price. I've dealt with some fairly large steel users and can tell you that a lot of steel alloys aren't just sitting on a shelf. All but the largest users also can't call a steel producer directly- things come thru distributors that have minimum order restrictions themselves.

Someone already estimated earlier a tank has $12 worth of steel. Same tank retails for $300 - $350. The only scenario where I can see them waiting for the price of steel to drop instead of buying at whatever price (lets say $50 per tank) if they had no competitors and could afford to make divers wait. And, I guess, they can. Whatever competition is out there (Faber, Asahi..), they make far inferior tanks.

 

[yknot]

Someone already estimated earlier a tank has $12 worth of steel. Same tank retails for $300 - $350. The only scenario where I can see them waiting for the price of steel to drop instead of buying at whatever price (lets say $50 per tank) if they had no competitors and could afford to make divers wait. And, I guess, they can. Whatever competition is out there (Faber, Asahi..), they make far inferior tanks.

I don't want to start a flame here but do you have any experience with manufacturing? Why don't you buy yourself a $12 hunk of steel and make your own tank. As there is obviously no value in the tooling investment, liability insurance, shipping and retail network involved, not to mention the 10,000 other minor points I am overlooking, please let me know where to send my $24 (I want twins).

As we have deduced, material costs are a secondary consideration when comparing steel and aluminum tanks. The manufacturing process between the two materials are vastly different but may be quite similar in end cost. There isn't a significant diff. in weight between steel and aluminum tanks, so shipping shouldn't be the reason. Also, steel tanks have a reputation for being far more rugged than aluminum tanks. I think that maybe some of these supposed advantages allows dealers to charge more for steel than aluminum and for no other reason. BTW- if you think the Faber tanks are junk, take a look at the rating for the OMS branded Faber's (10,000 fill cylces at 4,000 PSI).

 

[The Kraken]

Don't forget the DOT and OSHA . . . and all of the requisite documentation required by those agencies. It costs a goodly sum of money to maintain employees to generate the required data and manage the information.

 

[cool_hardware52]

I don't want to start a flame here but do you have any experience with manufacturing? Why don't you buy yourself a $12 hunk of steel and make your own tank. As there is obviously no value in the tooling investment, liability insurance, shipping and retail network involved, not to mention the 10,000 other minor points I am overlooking, please let me know where to send my $24 (I want twins).

As we have deduced, material costs are a secondary consideration when comparing steel and aluminum tanks. The manufacturing process between the two materials are vastly different but may be quite similar in end cost. There isn't a significant diff. in weight between steel and aluminum tanks, so shipping shouldn't be the reason. Also, steel tanks have a reputation for being far more rugged than aluminum tanks. I think that maybe some of these supposed advantages allows dealers to charge more for steel than aluminum and for no other reason. BTW- if you think the Faber tanks are junk, take a look at the rating for the OMS branded Faber's (10,000 fill cylces at 4,000 PSI).

Yknot,

I'm starting on my tanks today, I already have the necessary 3lb ball peen hammer and bench vise.

Tobin

 

[Lemonade]

I don't want to start a flame here but do you have any experience with manufacturing? Why don't you buy yourself a $12 hunk of steel and make your own tank. As there is obviously no value in the tooling investment, liability insurance, shipping and retail network involved, not to mention the 10,000 other minor points I am overlooking, please let me know where to send my $24 (I want twins).

Don't forget the DOT and OSHA . . . and all of the requisite documentation required by those agencies. It costs a goodly sum of money to maintain employees to generate the required data and manage the information.

That is exactly my point! I never said tanks were too expensive.
They got factories, they got presses, they got employees, they got expertise, and they got those DOT regulations handled. And you are trying to tell me with all that they sit on their butts waiting for price of steel to drop $5 a tank?

 

[The Kraken]

Steel is purchased by the ton. The cost of capital, current state of the consumer market, current cash flow for that particular department of the corporation, current tax liabilities, etc. all come into play here.

It just ain't that simple, if it were we'd see numerous other tank manufacturers in the market.

 

[Lemonade]

Steel is purchased by the ton. The cost of capital, current state of the consumer market, current cash flow for that particular department of the corporation, current tax liabilities, etc. all come into play here.

It just ain't that simple, if it were we'd see numerous other tank manufacturers in the market.

I agree completely. And that was the point of my original remark. Whatever is causing current situation with steel tanks, it is NOT price of steel or shortage of steel, definitely not construction of railroads in China.