Steel Bulletin April 2021
March 31, 2021
As predicted in our December Bulletin prices have moved up dramatically breaking new records nearly every week. Strip mill products are leading the way driving hollow section prices along in their wake. Between January and June 2021 we anticipate seeing hollow section increases of £155/t. Heavy sections have also notched up January to April increases of £160/t. There are various reasons for these increases, Brexit controls are adding to basic costs, quotas are inadequate from the EU and Turkey but the driving force is that world production is still not meeting demand. We believe prices have reached a temporary plateau but do not at present foresee any immediate downward price adjustments, in fact J.P Morgan and Goldman Sachs are predicting a steel “Commodity Super Cycle” and suggest prices will remain high for many years to come. For up to date information please contact our sales department.
Despite high prices and very low stock levels, steel buyers have been forced into the market and as production levels are not meeting demand there are shortages in some sizes. Especially strip mill products. The quotas relating to hollow sections from Turkey and the EU need changing as steel piles up at the docks so that importers can avoid paying 25% duties. Merchant bar supplies are currently in balance although the uncertainty surrounding Liberty causes serious concern. Tomrods stock levels are in balance and we do not foresee any serious disruptions in the near future.
We continue to work hard to maintain our high service levels and we will be replacing part of our transport fleet later this year. Over the last 4 months we have continued our sales training courses, refurbished the preservation line, placed an order for an updated ERP system and successfully integrated the new semi- automatic saw. Covid is still a very big issue and we continue to take exceptional precautions to protect our staff and visitors. On a personal note my clinical trial against cancer is working well, I am in remission and continuing play golf, do the gardening and enjoy watching Tomrods continue to prosper from a distance.
Thank you for reading this and if you have any comments about Tomrods or our website please do contact me at firstname.lastname@example.org
Head Office: Hambleton Steelworks, York Road, Thirsk, North Yorkshire, YO7 3BT
Telephone: Sales: +44 (0)1845 528200 Accts: +44 (0)1845 528220 Fax: Sales: +44 (0)1845 528210 Accts: +44 (0)1845 528230