Steel raw materials update 2021
??????This chart is from a website that talked about the steels in prices update.
We can see that is changing much higher trend from 2020 even more after Covid-19.
????????????If you’re in the metals industry or another industry, such as construction OR building material supplies, that deals with steel in any capacity, you’re probably aware that steel prices are on the rising.
????However, this isn’t just a small price increase. Steel costs are at an all-time high, which is impacting everyone who is buying or selling steel products, including?metal profiles for ceiling or drywall systems.
??Do you think what is causing this increase? Do you know about some of the actions you can take action to protect your business?
For 10+ years, our Metals have been providing metal profiles and zinc coast products to building construction and manufacturers all across, such as Africa including all the countries yet, South America, Europe, Asia, etc.
We experienced price fluctuations and material shortages in the past, even more during COVID-19, and how critical it is for YOU to understand why steel prices are rising and how this affects us.
I searched some information online and concluded it:
What Is Happening With The Steel Market in Late 2020, Early 2021
The state of the steel market is a by-product of a number of domestic and international events. It’s more of a global supply problem that every business and every consumer is facing.
For a little background, back in the early spring of 2020, when the Worldwide, domestic steel mills that produce flat-rolled products shut down. Conversely, some of the demand for steel and metal products went down due to mandated shutdowns and other necessary measures to keep people safe.
From about March to August of 2020, the metal market demand was relatively stable.
The steel price fluctuation timeline
Normal fluctuations of steel prices are around a penny or two (plus or minus) month over month, depending on what is taking place in the market.?
Once the end of summer 2020 arrived, we saw the price of steel jump significantly, and it has continued to rise. Here’s a quick breakdown of how prices have changed since August of 2020.
Unfortunately, data and market trends show that it doesn’t look like prices will be going back down in the short term.?????
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What the shortage and price increase for manufacturers and business Steel Shortage
??To keep it as simple as possible:?It means there is very little steel to be had.
??Limited buying ahead or buying in extreme bulk quantities.
??Taking on very few new customers.
????Forecasting metal needs for large projects.
Consideration and information to help constructors and buyers
If we communicate with our customers during this time is critical, many people who are buying new metal profiles or other building materials may be unaware of the steel shortage.
Make sure you’re prepared to openly discuss the following topics with potential customers and clients:
For example, if the Real estate developer or Decoration company got a project or bid six months ago, they can expect to pay about 20%-30% more than the price they were quoted — just due to the price increase for materials.
Recently the shipping companies always were reported some cases on the boards，from foreign countries to China，Delayed arrival& Port-hopping phenomenon which both delayed Cargos and goods loading.
As above said the phenomenon why caused so much high cost? Vessel delayed more than 14-21days for a period of COVID-19. We must make sure all the staff on board are safe and uncase.
Why? A bid, needs more people to attend or a big party to arrange.
However, the COVID-19 is the biggest effective favor.
????When it comes to the steel shortage and price increases that we’re experiencing in 2021, the best thing you can do is communicate as much as possible with your suppliers and potential customers.
MHE /RTCH/FORKLIFT/OPERATOR
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