Newsletter 45 - October 2009

"Keeping you Informed"

Prices

(1st Jan 06 = 100 units)

                        From 1st Oct (1st Jan) Last 12 months

                                     2009  (2009)    High           Low

Merchant Bar                 131  (134)      189 (10/08) 120 (07/09)

(Rounds, Flats, Angles etc)                      

Heavy sections              133  (172)     212 (10/08) 129 (08/09)

(Beams, Columns etc)                              

Hollow Sections             133  (154)     194 (10/08) 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. In consequence both merchant bar and hollow sections have seen increases and the slide in heavy section prices has stopped.Merchant bar prices have been increased by £20/t from 1st October and hollow section prices will increase over the next few months. Heavy Section prices are being increased by £25/t from 1st October. We believe these prices will be passed on in the short term.

Supply

A very tight supply of most products. If the mills increase 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.

Demand
Buyers have returned in most areas except for structural steel.

Credit

Very, very tight as insurers brace themselves for worse to come.

Tomrods

Steve Lockwood, our Financial Director, has decided to take a step back from the front line and will be retiring from 30th September, Steve has been with us since 1986 and has been part of the success of our company. We will all miss his hard work, honesty and friendship and we wish him and his family every success in the future.

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 -