Newsletter 44 - September 2009

"Keeping you Informed"

Prices

(1st Jan 06 = 100 units)

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

                                     2009  (2009)    High           Low

Merchant Bar                 126  (134)      215 (07/08) 120 (07/09)

(Rounds, Flats, Angles etc)                      

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

(Beams, Columns etc)                              

Hollow Sections             133  (154)     205 (08/08) 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 £15/t from 1st September and hollow section prices will increase over the next few months by about £50/t. Heavy Section prices are being increased by £25/t from 1st October.

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. Your guess is as good as mine!

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.

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 -