There has been a clear demand for materials like Stainless Steel, with much of this demand stemming amongst Asian countries. But this is a trend now spreading across the world.
Despite a growing surge of demand and rising prices especially within China, Steel Mills are not benefitting from increased profits. This is largely due to surging Iron ore prices amid a post-virus economic recovery. Analysts in China are now calling for China to strive for a greater say in iron ore prices.
Freight shortages, caused in part by Brexit and the COVID-19 pandemic, has also contributed to increased costs due to increasing demand. The cost of moving both raw materials and finished products has risen dramatically, and the extra cost has been added onto the basic price of materials as a result.
Growing demand has seen a rise in companies stocking up due to the lower availability of steel which has further reduced availability and naturally caused prices to increase. This was not helped by the fact that in 2020, the economic slowdown paused construction projects, steel production and steel consumption alike. As a result, steel producers cut worldwide supply to reflect these, then, new conditions.
2021, however, is being earmarked as a period where the global economy is expected to go through recovery. The construction industry especially, is positioned to be one of the most powerful sectors beyond general economic recovery according to industry leaders.
The first glimpses of an economic rebound and recovering demand was reported by Steel Market Update (SMU). They showcased how global steel mills have been filling up orders since mid-November.
SMU also revealed in a poll that as much as 86% of steel buyers expected further steel prices increases from mills as demand grows. It’s likely that, based on these figures, we could expected further price hikes throughout the year.
If you’re looking to secure a lower rate for your steel projects, it is best to prepare for rising costs and secure your orders sooner, rather than later.