Newsletter 40 - May 2009

"Keeping you Informed"

Prices

(1st Jan 06 = 100 units)

                        From 1st May (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              138  (172)     212 (08/08) 138 (05/09)

(Beams, Columns etc)                              

Hollow Sections             122  (154)     205 (08/08) 122 (05/09)  

(Box, Tubes etc)                                     

Prices

Prices continue to weaken but there is a rumour that due to an increase in scrap prices there could be an increase in merchant bar prices. Heavy section prices are the biggest loser over Easter with hollow sections continuing with their steady and orderly decline. Are the prices now at the bottom? I will let you know in a couple of months time.

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
There is a demand for steel.

Credit

Still very tight and we are working overtime to maintain insurance cover on our customers. The insurance companies are very nervous of all risks because of the current economic recession. Please do not be offended if we ask for up to date management figures as this is what we are being asked to provide by our insurers. If you have any problems please contact Melinda Bruce who is here to help.

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 -