Newsletter 42 - July 2009

"Keeping you Informed"

Prices

(1st Jan 06 = 100 units)

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

                                     2009  (2009)    High           Low

Merchant Bar                 120  (134)      215 (07/08) 120 (04/09)

(Rounds, Flats, Angles etc)                      

Heavy sections              129  (172)     212 (08/08) 129 (06/09)

(Beams, Columns etc)                              

Hollow Sections             124  (154)     205 (08/08) 122 (06/09)  

(Box, Tubes etc)                                     

Prices

Merchant bar prices continue to fluctuate but monthly increases are being matched by monthly decreases. We have kept our prices the same since April and do not forsee any further dramatic changes until September at the earliest. Heavy Sections are under pressure but we again feel confident that prices are now at their lowest and changes will be upwards in the short term. Hollow section prices are now increasing as they reflect the increased cost of strip in the world market. Overall prices are rallying and we expect this trend to continue until September, a welcome change to the constant fall month on month.

Supply

As mills try to cope with the demand created by customers returning to the market to replenish stocks, they are faced with the problem of meeting demand on 50% capacity. There are acute shortages of some popuar sizes and prices are increased in the short term. Matching demand with supply is going to be an ongoing problem for all mills in all products.

Demand
Demand in the structural market is causing deep concern but other sectors are returning to normality at levels in the region of 30% below normal. It is generally agreed that it will be years before we return to pre 2008 demand levels.

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 -