Newsletter 7 -June 2006

"Keeping you Informed"

Prices

                                  August     YTD 2006        YTD

                                                                           % increases

Merchant Bar             TBA          +£67               + 21%

Heavy sections          +£30         +£90               +27%

Hollow Section          TBA           +£100             +30%

Steel prices continue to rise, merchant bar prices are expected to level off but hollow sections will follow hot rolled coil prices and could be another £30/£40 t higher by September. Heavy sections have been increased by £30/t and another similar iincrease could be announced for September.

Supply

Beware mills are allocating steel and rollings are no longer available until September/October, especially on heavy sections and hollow sections.

The world market is very bouyant and capacity is in demand, we strongly recommend that you plan your steel supplies as far forward as possible.

Demand
Our customers again are reasonably busy and if there is an uplift in demand then prices will harden even more. Forecasting supply, demand and price levels is very difficult at present but forward planning is eseential.

Tomrods Limited

A good May has been followed by a slow start to June but with GP% increasing along with prices, we anticipate good results over the next few months.

We welcome to our Company Andy Pearson who is in the purchasing department and Scarlett Reeves who is assisting Laurence with All Steels Trading as well as helping with Sales.

All Steels Trading has had an excellent start and long may it continue.

IIf you require any further information please give either myself or one of my sales colleagues a call.

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

John Thompson
Managing Director