Newsletter 8 -August 2006

"Keeping you Informed"

Prices

                                  August     YTD 2006   Forecast

Merchant Bar             NIL          +£67/21%   No increases planned

Heavy sections          +£30       +£90/27%  £20/30tOctober

                                                                    Unconfirmed

Hollow Sections         NIL          +£100/30% £20/T October

                                                                     Unconfirmed

Mill shutdowns usually slow down price movements and it is only when everyone returns to work in September that price movements start in earnest. It will be interesting times.

Supply

The supply of special lengths of hollow sections is still difficult along with a number of heavy section sizes. Corus and all the major European mills are inundated with orders and have been allocating tonnages to all UK stockholders. This will help to strengthen prices and may cause some shortages. Please ask us about your requirements so we can help you secure supply.

Demand
Our European friends are still busy, although demand in the UK is average for this time of year.

Tomrods Limited

Quite a busy month has seen us buy a new shotblasting and preservation line which will process water based paints from Gietart, a £400k investment. This will be installed before the end of the year. We also say a temporary goodbye to Gail Jackson after 17 years at Tomrods, who is leaving to have a baby. I would like to thank Gail personally and publicly for her help with the purchasing and also for her unfailing good humour, she always has a smile on her face. I think I speak for everyone when I say she will be greatly missed and we look forward to her return after the succesful birth of their firstborn.

We also welcome Saly Dixon to our sales team and her picture along with all the other members of staff will appear shortly on our website.

"Instinct" our race horse for three months has only run twice and has been unplaced both times, as with all racing matters we remain optimistic that success is just around the corner.

Mel Bruce our Administration Manager has had her operation and is now convalscing, we all wish her (especially Steve Lockwood) a speedy recovery.

The good weather continues with record temperatures for the UK and Tomrods and All Steels continue to propser, long may both contine.

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