Steel Bulletin News June 2013
June 10, 2013
The international steel market prices remain weak and the European situation is dragging down our prices in the UK. However, the steel producers are currently between a rock and a hard place with costs escalating and selling prices unable to reflect these increases. Prices have eased back in Q2 2013 and the prospect of an upturn in demand and prices over the next few months are not anticipated. However, the strengthening of the $ against the £ has helped keep cheap imports to a minimum and prices should remain stable at current levels.
The supply side is mostly in balance although stock levels are generally low. The press announcements relating to Tata at Scunthorpe and the future of sections production in the UK will cause some concern but as there is a large over capacity in steel supply any impact would be manageable.
We have now taken delivery of three new articulated wagons with four more rigids on order for later in the year. We continue to achieve our volume targets but like all of our other competitors and many customers, margins are under pressure. We are working hard at organising an Open Day later in the year to celebrate the company’s incorporation 40 years ago on the 1st of October 1973 and we hope many of you will be able to join us, further details to follow. We continue to invest in the future and have some exciting developments on the horizon, which will include a brand new website and some capital expenditure, which we will be announcing shortly. Let’s hope that the good weather we are currently experiencing continues and that the light at the end of the tunnel starts to get a bit wider.