Prices Soar For Another Commodity : Steel

Long Beach Business Journal - May 13, 2008
By Stacy Clements - Staff Writer


It's a $60 billion enterprise and the backbone of the country’s infrastructure and transportation industries – steel. The commodity is used to construct bridges, cars, railroads and skyscrapers, but steel prices are peaking as rapidly as
petroleum, and there seems to be no end in sight........

Daryl Phillips, president and CEO of Phillips Steel Co., says that its location in West Long Beach is advantageous because of its proximity to the ports and major freeways. His grandfather founded the company in 1915, while fourth generation
family members currently run its day-to-day operations. The company also recently expanded to include Phillips Steel and Industrial Supplies in La Porte, Texas. “There’s a lot of negativity [about the economy] going on in the newspapers and on the news channels, but we don’t see it.

The Los Angeles/Long Beach port [complex] is a very strong business environment,” Phillips says. “We don’t care what the dollar is or what the cost of goods are because it’s a commodity,” he adds. “We just pass that on to the consumer.” Phillips Steel’s Westside operations are comparable to a Home Depot center that specializes in metal. The facility distributes and supplies steel, stainless steel, aluminum and brass. Additionally, it distributes metal working tools and provides on-site cutting and fabrication. The original warehouse still stands on the approximately 100,000-square-foot lot on Anaheim Street. “The demand for metal for industry [use] is still strong, and we’re very optimistic that it will remain strong,” Phillips says.


In 1915, Phillips Steel Company specialized in scrap metal. Today it distributes and supplies steel, stainless steel, aluminum and brass, and also provides metal tools, cutting and fabrication. The original warehouse still stands on the approximately 100,000- square-foot lot on Anaheim Street. Owner Daryl Phillips’ grandfather founded the company, while fourth-generation family members currently run its day-to-day operations.