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Newsletter 46 - November 2009
"Keeping
you Informed"
Prices
(1st Jan 06 = 100 units)
From 1st Nov (1st Jan) Last 12 months
2009 (2009) High Low
Merchant Bar 126 (134) 161 (11/08) 120 (07/09)
(Rounds, Flats, Angles etc)
Heavy sections 129 (172) 186 (11/08) 129 (08/09)
(Beams, Columns etc)
Hollow Sections 133 (154) 170 (11/08) 122 (06/09)
(Box, Tubes etc)
Prices
Limited supply, due to the mill reducing their production levels, has created a very tight supply of certain popular sizes. However a reduction in scrap prices has seen the merchant bar October increase neutralised but hollow section prices have remained firm. Heavy section prices will eventually show the £25/t October increase although this is taking time to feed into the market place.
Supply
If the mills increase their production levels by the right amount then stability will remain, if they increase by too much or too little the prices will slide or rise along with availability. Currently supply is in balance although some merchant bar sizes are still scarce.
Demand
Buyers have returned in most areas except for structural steel.
Credit
Very, very tight as insurers brace themselves for worse to come.
Tomrods
We are currently installing a new, fully automated band saw at our Thirsk works which will nearly double our current output odf saw cut sections. This should be on line by the middle of November.
On a trading front, although despatches are down, we continue to make small profits month by month, thanks to our dedicated and willing staff who have all contributed to this and to our loyal customers who continue to give us their support. We intend to come out of this recession stronger and far wiser.
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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