Newsletter 4 - March 2006

"Keeping you Informed"

Prices on the move again
World prices are again on the move and this has been reflected in the recent heavy section increase of £20/t, which has been closely followed by merchant bar with an increase of £15/t and we are expecting a very significant rise in hollow sections following an increase of $90 (£50) in the price of hot rolled Ukrainian coil. The increases are market led and some of the signs suggest that the price of steel could again become unstable. Its a good time to buy.

Demand
Over the past few months demand for steel has been acceptable and signs are that it might strengthen over the forthcoming quarter. Stock building is in full swing throughout Europe and lets hope it does not again create a false boom.

New Company
Laurence McDougall will now be joining us on 3rd April and we have formed a new company called All Steels Trading Limited which will be buying and selling specialist parcels of prime steel for sale into the UK and export markets. Further details will follow.

Tomrods Limited

We have eventually managed to work through our expensive stocks bought when prices were at their height over 12 months ago. This has enabled us to create a realistic gross margin which has been reflected by a return to profitable trdaing in the first two months of 2006.

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