An Overview of the Steel Price Increases

An Overview of the Steel Price Increases

An Overview of the Steel Price Increases

Wow what a year the last 12 months have been! With 2020 being a year most of us won’t forget, it is no surprise that in the early part of 2020, demand for steel and metal products went right down due to the Covid 19 shut downs.  By the time summer rolled around, construction began to open back up across the world, meaning the demand for steel began to increase. Steel prices have now risen by 31.8% higher than April 2020, with no outlook of slowing down.

So why have we seen an increase in steel prices? 

There are several factors to be taken into consideration for the increases.  The high demands from construction industry, the steel mills were unable to produce enough steel to meet the new demand, China being the largest producer saw a spike in Covid 19 cases again and had local lockdowns.  This in turn pushed the steel prices up again.

Also, at the start of 2021, we have also had to deal with the freight issue caused by Brexit - this has also contributed to increased costs due to an ever-increasing demand.  The transport costs of products have dramatically risen and also had an increase in cost with Brexit.

There is also an international shortage of steel which has led to a price increase, and there’s a steep increase in the price of iron ore as well.

What does this mean for Bradfabs and our customers?

Whilst we have no control over the surge in steel prices, we are working hard behind the scenes to ensure our stock levels are maintained.  We are trying to hold prices as much as we can.  By ordering in advance for your steel project with a good lead time, it allows Bradfabs time to prepare for your project and obtain the best prices for steel possible, and as always, we remain positive and will continue to deliver our high-quality products and service for our customers, always.