Steel Price Increase

[Windy Miller]

Just got this from Parker Steel:

Dear Customer

I am writing to advise of a further minimum price increase of £40/t across our product range*. This increase is effective from today and in total is an increase of £90/t since the beginning of July. These price increases are being driven by a sharp increase in global raw material prices:
• Iron ore has increased in price to ~$80/t, an increase of ~40% from June 2017
• Coking coal has increased in price to ~$200/t, an increase of 40% from June 2017
• Scrap has increased in value by £20/t alone in August and is forecast to continue to rise sharply in August and September
These prices have risen as a result of a reduction in supply of raw materials following global anti-pollution measures. We also have a global increase in demand for steel which is fuelling a view that a steel shortage may be on the horizon, which is further driving prices upwards.

Please consult with your Sales Executive for further information.​

I will advise of any other price increases in due course.
​

Not good news. Anybody else heard anything about it?

 

[gav0994]

Yes. I had a quote for a 300mm dia x 650mm solid steel billet for a project back in July. After finally getting my finger out and placing the order 10 days ago it had went up by £70 but it's crucial to the project (see my post driver thread in projects) so it had to be purchased. Kevin at Franklin Steel in Dumfries said that most steel products had taken a big jump in price.

 

[500e]

Job to price at present due to uplifts on steel, check how much it has gone up since January, then look at scrap prices again especially clean copper

 

[julianf]

Remember, £100 today only buys you the same amount of imported goods as £89 would have done in June of last year.

$1.48 on 23rd June 2016, vs $1.29 today.

Even if the steel isn't imported, you still need to compete against overseas buyers, who are now 10% stronger.


Find an old toolstation catalogue, and compare the prices with todays copy, and you see just the same thing.

 

[mcostello]

Been scrapping out an old farm, price I am getting is .0562 a pound. That's $112.40 a ton. Sorry Metrically and English measurementically challenged. Inferial is all I know.

 

[Bigjoe]

Another reason for increase is one of the kilns/crucibles at British steel has broken down so lack of supply, the company I currently work for are getting a lot of custom from Parkersteel customers

 

[Welderpaul]

I've had letters from British Steel and Arcelor Mittal advising of another £40/T going on, and there was a £50/T rise recently. The £40/T rise doesn't come in until 1st Sept so looks like Parkers are jumping in a bit earlier with it.

 

[Spark plug]

I have just been thinking this last week or so, that there is a large increase in transit tippers loaded with washing machines and bed frames round these parts, makes sense now.

 

[Windy Miller]

Hmmm I've priced a few little jobs that I've not got around to doing yet. Just gates and railings, so not a massive amount of steel involved, but there will still be an increase in material costs. Hope the punters will be understanding!

 

[armalites]

I guess it's like fuel and electricity, if you need it you need it.

I would how many people said they would stop smoking if they hit £5 a pack

I've got some scrap tow weigh in, I think I may wait a couple of weeks

 

[Revs1972]

I've had letters from British Steel and Arcelor Mittal advising of another £40/T going on, and there was a £50/T rise recently. The £40/T rise doesn't come in until 1st Sept so looks like Parkers are jumping in a bit earlier with it.

Parkers used to be quite competitive, but some of their pricing is well over the top. I think they get hit with the high prices as they are regularily bringing it in, whereas a lot of other places are selling stock they bought at the old prices.

Bought 75 ton recently from Klockners (OLD ASD) and Parkers were £9k more expensive on cut and drilled.( my account manager was away)
Klockners service down to Exeter was shocking in its incompetence though. They made Parkers look good on that front

just pushed the button on 22 ton with AJN at a good price (600 a ton cut and drilled) so keeping my fingers crossed they perform

 

[I'm getting on a bit]

Well I compared prices with Parkers to my usual supplier Parkside Steel about three weeks ago.

Parkers were about 60% more expensive at the time.

Just placed the order with Parkside, prices were the same and comparable to other size's I needed that weren't originally quoted