Why are steel tanks so expensive in the US

[cool_hardware52]

The price of steel can be a player, if not directly.

Lets say a particular type of steel (alloy, shape etc.) is in greater than anticipated demand. Lets say for example the same type of raw material that's pressed into tanks is also pressed into artillery shells.


The price of that material goes up and the availability goes down.

If that causes the production of scuba tanks to be limited because the scuba tank manufacuturers can't buy the steel they want, or deliveries are uncertain, or interupted, then the price of the scuba tanks are likely to go up.

While the actual incremental rise in the cost of the raw materials may only be a few dollars per tank every step in the distribution chain that can benefit from the restricted supply of finished tanks will.

Remember that this whole theory starts with a restriction in the supply of the raw material, and an attendant rise in cost.

It can matter little what causes the intitial shortage of material, i.e. china, market manipulation, the war, weak dollar etc.

The good news is that in this capitalistic system (or reasonal facsimle thereof) market forces will react. If demand stays high for steel tanks, more of the right steel will be produced, more manufacturers will join the game, and more efficient means of distribution will appear.

Steel making, and tank manufacture are both highly capital intensive and will not react overnight. What we really need for steel tanks to get cheaper is continued willingness of current divers to pay high prices and therefore provide the incentive for more tanks to be built. Go get 'em.



Regards,



Tobin George

 

[yknot]

And all any of this info does is reinforce the fact that 90% of the scuba industries' effort is directed at the 90% of divers who only dive annually in warm salt water. If 90% of US divers dove dry in cold fresh water, there would be a dozen steel tank manufacturers and competitive prices. The original poster mentioned the cost comparison between steel and aluminum tanks in the US vs Europe. Other threads I have seen lead me to believe that aluminum tanks are more expensive than steel in Europe. Does this just mean that aluminum tanks are vastly over priced there? Obviously, an Italian Faber manufactured tank is going to be cheaper (just due to shipping and tariffs) in Europe than in the US. How much are PST tanks in Europe? Are they even available?

 

[Far_X]

What we really need for steel tanks to get cheaper is continued willingness of current divers to pay high prices and therefore provide the incentive for more tanks to be built. Go get 'em.

And after we have bought all the tanks we need (if we ever reach that point), then we'll have a stock of highly expensive steel tanks whilst the newer newbies come along and benefit from our duty to the diving community. Can we make them buy our expensive tanks and we buy the newer cheaper ones instead?

 

[cool_hardware52]

And after we have bought all the tanks we need (if we ever reach that point), then we'll have a stock of highly expensive steel tanks whilst the newer newbies come along and benefit from our duty to the diving community. Can we make them buy our expensive tanks and we buy the newer cheaper ones instead?

Isn't that what some call "mentoring"?


Tobin