Steel Bulletin June 2018
June 28, 2018
Our average selling price index for 2018 to date has now reached 143, at last catching up with similar prices experienced in 2008 prior to the “great” depression of 2009 onwards. We expect prices to continue to edge upwards over the coming months following the recent £30/t increase on heavy sections announced by British Steel and Arcelor Mittal. Hollow section prices remain static as we await the EU ruling on potential duties on Turkish imports. Merchant bar prices have been slipping slowly backwards but we are expecting a price increase announcement shortly. Otherwise we do not see a lot of pricing activity over the summer months as mill shutdowns reduce their need to attract tonnage, any price movements will start again in September. We talk regularly to our supplying mills and we believe that any price movements will be upwards and as predicted we expect our pricing index to reach 150 by Q3 2018.
No real problems at present but hollow sections might have some stock outs as Turkish tonnages reduce as we await the EU ruling on duties. Will we suddenly get an influx of steel into Europe as a backlash to the Trump Section 232 duties? Short term maybe but we believe that the EU will react quickly to prevent any threat of oversupply that could undercut prices.
We started the year well but April was very slow, fortunately tonnages have picked up in May and June. We have welcomed two new members of staff to our sales team Matthew Robinson and Peter Bird, who together add over 40 years of experience. The new warehouse roofs are now fully installed and over the next 4 weeks we will be installing our new cut and drill line. We will be able to offer all beam and column sizes up to 1000mm widths as part of our standard range and look forward to receiving your enquiries.
Agnes Butowska, our girl Friday of the Admin department, is sky diving on 21st July raising money for Children’s Heart Research. Tomrods has pledged to match the total raised doubling the amount raised. If you can help please do so by contacting www.justgiving.com/owner-email/pleasesponsor/MelindaBruce. Thank you for your support.
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