Newsletter 47 -December 2009

"Keeping you Informed"

Prices

(1st Jan 06 = 100 units)

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

                                     2009  (2009)    High           Low

Merchant Bar                 126  (134)      161 (11/08) 120 (07/09)

(Rounds, Flats, Angles etc)                      

Heavy sections              129  (172)     186 (11/08) 129 (08/09)

(Beams, Columns etc)                              

Hollow Sections             130  (154)     170 (11/08) 122 (06/09)  

(Box, Tubes etc)                                     

Prices

Different products are reacting differently, rising or falling with the price of scrap and short term demand. Overall prices seem to have hit rock bottom and are currently just bouncing along, long may this continue as stability is very important.

Supply

Currently in balance but there may be some short term merchant bar shortages.

Demand
We believe that we are now at the bottom of the cycle and that we must get used to the current level of steel consumption as it will not improve during 2010.

Credit

Probably the cause of most concern as we approach Q1 2010.

Tomrods

We will shortly be announcing the name of our new Financial Director who will be starting with us from February 2010.

The new fully automated band saw is now installed and we are running trials at this moment. We have bought a second automated saw to add more capacity and help reduce costs - we will be ready for the upturn in the market.

It has been a difficult trading year but we anticipate that we will post small profits at our December year end - we think this will be an excellent result.

Finally may we wish all our customers, suppliers and readers a very, very happy Christmas and prosperous New Year - thany you for being there.

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 -