Newsletter 43 - August 2009

"Keeping you Informed"

Prices

(1st Jan 06 = 100 units)

                        From 1st Aug (1st Jan) Last 12 months

                                     2009  (2009)    High           Low

Merchant Bar                 123  (134)      215 (07/08) 120 (07/09)

(Rounds, Flats, Angles etc)                      

Heavy sections              129  (172)     212 (08/08) 129 (08/09)

(Beams, Columns etc)                              

Hollow Sections             129  (154)     205 (08/08) 122 (06/09)  

(Box, Tubes etc)                                     

Prices

Limited supply, due to the mill reducing their production levels, has created a very tight supply of certain popular sizes. In consequence both merchant bar and hollow sections have seen increases and the slide in heavy section prices has stopped. We anticipate prices will remain unchanged until mid September when European steel buyers will have returned from their hoidays.

Supply

A very tight supply of most products. If the mills increase production levels by the right amount then stability will remain, if they increase by too much or too little the prices will slide or rise along with availability. Your guess is as good as mine!

Demand
Buyers have returned in most areas except for structura steel.

Credit

Very, very tight as insurers brace themselves for worse to come.

Thank you for reading this and if you have any comments about Tomrods Ltd or our website please email the undersigned at johnt@tomrods.co.uk

John Thompson
Managing Director -