Steel Prices

[jimbo1962]

I dont see one about this.
We buy steel from a couple of suppliers who are sitting on maybe a million pounds worth of steel, a lot of which they probably bought last year at about £750 / tonne, so it really annoys me that every time theres a price hike' like the latest one this week, then the increase is immediately applied to all of their stock and theve got to be making absolutely huge mark ups.
Ive yet to hear a supplier say " I got that last year at £500 / t so you can have it at £700 / tonne"

 

[MetalMonkey]

https://www.mig-welding.co.uk/forum/threads/price-of-steel.120032/

This thread?

 

[gaz1]

so answer me this then

how do they replace stock if you bought at last years price when this year they have to pay double for the same materials

its the same on the building trade if you think we are going to continue to work on last years material prices then think again id rather sit at home twiderling my thumbs than go to work and loose money

Timber prices

At the moment he might want to look into 18 mm moisture board. It's dense MDF, green in colour and we started using it when we couldn't get ply as it's the same price as decent ply @ £50:00 a sheet. Aside from being much more stable it cuts really well and also takes coatings better as it's not...

www.mig-welding.co.uk

 

[Wildefalcon]

Also they may not own the steel until they sell it. You never know what the arrangements are. Example: Tesco don't pay for milk until it's been sold to the public.

 

[bricol]

I'm still bemused by such comments. I mean it affects me too, but a business, run purely to make money, takes advantages of opportunities to make money

 

[Richiew]

You wouldn't sell your house for what you paid for it.

 

[Screwdriver]

I dont see one about this.
We buy steel from a couple of suppliers who are sitting on maybe a million pounds worth of steel, a lot of which they probably bought last year at about £750 / tonne, so it really annoys me that every time theres a price hike' like the latest one this week, then the increase is immediately applied to all of their stock and theve got to be making absolutely huge mark ups.
Ive yet to hear a supplier say " I got that last year at £500 / t so you can have it at £700 / tonne"

If you find that annoying, why didn't you buy a few tons before the price went up? It's just a commodity, price is bound to go up, unless of course it suddenly drops. I guess then you'd be relieved you weren't sitting on a million pounds worth of stock that suddenly lost a huge chunk of its resale value. Let them take the hit right?

 

[jimbo1962]

so answer me this then

how do they replace stock if you bought at last years price when this year they have to pay double for the same materials

its the same on the building trade if you think we are going to continue to work on last years material prices then think again id rather sit at home twiderling my thumbs than go to work and loose money

Timber prices

At the moment he might want to look into 18 mm moisture board. It's dense MDF, green in colour and we started using it when we couldn't get ply as it's the same price as decent ply @ £50:00 a sheet. Aside from being much more stable it cuts really well and also takes coatings better as it's not...

www.mig-welding.co.uk

they charge me the new price plus their reasonable profit, simple.
I dont expect last years prices for this weeks costs
I dont expect profiteering on old stock.

 

[h-dom]

so answer me this then

how do they replace stock if you bought at last years price when this year they have to pay double for the same materials

its the same on the building trade if you think we are going to continue to work on last years material prices then think again id rather sit at home twiderling my thumbs than go to work and loose money

Timber prices

At the moment he might want to look into 18 mm moisture board. It's dense MDF, green in colour and we started using it when we couldn't get ply as it's the same price as decent ply @ £50:00 a sheet. Aside from being much more stable it cuts really well and also takes coatings better as it's not...

www.mig-welding.co.uk

Exactly the same with fuel that people (me included) complain about. How can they buy it if they can't afford it? Would you rather have no access to steel because the stockholder has run out of stock for selling it cheap and can't afford to buy any more?

 

[Munkul]

£1 million worth of steel equates to under 1000 tons of structural steel stock (at 2021 prices!), which really isn't all that much. The average stockholder at an educated guess will have around 50-80 tons going out every day, so they only have 2 weeks worth of stock? And all different products in different shapes and sizes, it's not a single shape/size/grade of commodity.

They're a business, they have to pay all of their employees, plus any stakeholders, and hopefully turn a profit... If they could sell it cheaper, they probably would! They know the game better than anyone, when anyone wants more than a ton of steel they generally ring around to get a best price... Usually I go to 1 of 2 local stockholders which is generally 20% cheaper than the other one...

 

[Ruffian]

I dont see one about this.
We buy steel from a couple of suppliers who are sitting on maybe a million pounds worth of steel, a lot of which they probably bought last year at about £750 / tonne, so it really annoys me that every time theres a price hike' like the latest one this week, then the increase is immediately applied to all of their stock and theve got to be making absolutely huge mark ups.
Ive yet to hear a supplier say " I got that last year at £500 / t so you can have it at £700 / tonne"

Got a local fabrication company which we deal with.
Yes it's only little bits and pieces but they are keeping to the 25% profit on purchase price.

This way I bought 2x bits of
800 x 200 x 12mm (only wanted 10mm)

But worked out cheaper than 10mm as was 18month old stock rather than fresh order.

 

[jimbo1962]

Exactly the same with fuel that people (me included) complain about. How can they buy it if they can't afford it? Would you rather have no access to steel because the stockholder has run out of stock for selling it cheap and can't afford to buy any more?

they buy it on credit on the understanding they ll make a profit when they sell it.
I pay for it twice, once for the inflated price on old cheap stock and once for the mad new price.

 

[tom2207]

If you dont want the steel dont buy it ,,, just wait for the price to drop and buy it then ,,,

Its supply and demand , steel prices get passed onto the customer in the end so the price is irrelevant , basically speaking unless your the final customer as a fabricator you only actually rent the steel anyway .

 

[Munkul]

I pay for it twice, once for the inflated price on old cheap stock and once for the mad new price.

No you don't. You pay the old price for the 2 weeks worth of ex. stock, and then you pay the new price for the new lot of stock. If you're a regular customer they'll even tell you when the next price increase is coming.

Or, if it's one of those deals where the stockholder doesn't own the steel til its sold, in fact you're then paying for the price increase as soon as Tata Steel etc announce it.

It's not the only industry to announce several rapid price increases due to energy/material costs. The company I work for uses a LOT of energy and spent £1m on energy last month instead of originally forecasted £500k (which is double what we spent this time last year at £250k). The company is having to suck up 3 months of making a £200k/month loss until the sales price increase comes in next month, which, understandably, customers aren't too happy about.
Now this time last year, the company was forecast to make a £250k/month profit for the next few years, and investments were being planned around that basis... now those investments have to be paid off by borrowing, which isn't a great position to be in.

 

[500e]

Did some work for a steel stock holder a few years ago 60/80 tones a day out the door most customers rang around for prices.
It was a cut throat game, prices were volatile even then

 

[gaz1]

they charge me the new price plus their reasonable profit, simple.
I dont expect last years prices for this weeks costs
I dont expect profiteering on old stock.

not what your first post complained about op

but as goes for companys making profits take a good luck at b&q, wickes and so forth buy in such bulk orders they are making more profit than what you think

little shops cant compete with those prices so shut down

 

[gaz1]

Exactly the same with fuel that people (me included) complain about. How can they buy it if they can't afford it? Would you rather have no access to steel because the stockholder has run out of stock for selling it cheap and can't afford to buy any more?

to say i was part of the farmers and haulers drivers that also joined them

thats the peoples fault for doing nothing and having a go at the drivers all because they was selfish and in it for themselves

only them to blame when they didnt join us

 

[Pete.]

If the guy is selling stock he bought cheaper before, at inflated market prices today then sooner or later he'll be selling stock he bought at inflated prices today, at cheaper market prices later. Either that or he'll be stuck with it.

 

[MetalMonkey]

sooner or later he'll be selling stock he bought at inflated prices today, at cheaper market prices later.

Do we think that is ever likely to happen?
I can't think of much in the way of materials that has ever got cheaper.

 

[tom2207]

Do we think that is ever likely to happen?
I can't think of much in the way of materials that has ever got cheaper.

Thats a fair point .