Steel Prices Update
Trend
Steel prices over the last 6 months have been steadily declining, this is nothing to do with the UK economy, which is in a healthy state, but due to the international market place. The European economy is not growing and the euro is weakening against sterling which leads to downward price pressures on steel imports into the UK from Europe. Further afield scrap and other commodity prices have fallen but a general collapse in prices has been avoided as the dollar strengthened against the pound and other currencies.
Now and Next?
We believe that the declining steel prices will end shortly and a recovery will be seen over the coming months. DioMet have always quoted using a system incorporating the most recent steel prices and will continue to pass on these savings to our customers for as long as possible. All quotations given in this period will be honoured despite the expected rise in raw material costs.
Uncertainty
The future supply of some heavy sections, (beams, columns, parallel flange channels and large angles) is uncertain due to the proposed takeover of Tata Long Products Division. There is speculation that the mill may close which would take a major supplier out of the market. At present the supply of certain sizes have been disrupted as mill rolling’s are cancelled or delayed.
