Heavy section mills increase prices on the back of full order books
May 19, 2021
The surge in global demand for building materials coupled with low stock levels, as capacities were reduced in the supply chain during pandemic lockdowns, has resulted in steel mills being faced with rising costs for raw materials and unprecendented order book levels.
During the month of May the market has begun to experience the extent of the strain caused by the supply/ demand imbalance with both Arcelor Mittal and British Steel announcing two price increases (at time of writing month to date) along with introducing allocations to customers for new orders.
As is apparent from both the speed and extent of the price increases, the situation is very fluid and availability of some sections may become limited for periods of time over the months ahead. Tomrods understand that the situation has become extremely difficult for both stockholders and our customers in both pricing and securing new orders and can assure all of our valued customers that we will continue to act with the integrity for which we are known but do advise of challenging times ahead. These are global factors over which there is little control but we will do our very best to keep you up to date as the situation develops.
Please click onto the links below for copies of mill correspondence during the month of May:
Arcleor Mittal £40 per tonne price increase 4th May 2021
British Steel £50 per tonne price increase 5th May 2021
British Steel close order book due to high demand
British Steel introduce allocations for new orders
Arcelor Mittal £80 per tonne price increase and introduction of allocations 18th May 2021