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Newsletter 41 - June 2009
"Keeping
you Informed"
Prices
(1st Jan 06 = 100 units)
From 1st June (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 122 (154) 205 (08/08) 122 (06/09)
(Box, Tubes etc)
Prices
Merchant bar prices have been increased to reflect higher scrap prices with immediate effect. This should help stabalise prices during June. Heavy section prices have contimued to decline but not as a result of mill prices but due to competition between stockholders. This price decline will soon change as stock levels get into line and stockholders realise they cannt replace at anticipated price levels. The price could rebound by £100/t in a very short space of time, please be careful when quoting forward work. Hollow section prices are reltively stable.
Supply
Not straight forward, we could expect the mills to give a better service due to the lack of demand, but this is not always the case as they fail to get sufficient orders to mount rollings.
Demand
We are seeing an improvement in demand as customers come back to the market realising that prices might have reached the bottom. A reduced level of demand is far better than none at all.
Credit
We have managed to change our credit provider from Amlin, who are retiring from the market, to HCC. We have a lot of work stil to do but anticipate that we will be able to offer better levels of credit over the coming months.
Tomrods
As a company we have not made anyone redundant as we believe keeping the present team together is very important to ensure a high level of service to our customers. We are however looking at reducing costs wherever possible so we can return to normal trading patterns.
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 -
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