Steel Bulletin - June 2019
June 28, 2019
As can be seen from our graph selling prices have never been higher, but only just as we see prices stagnate. Stagnate is probably not the right word to use as mills are constantly trying to push up prices on the back of raw material increases and stockholders are doing the op-posite. We are in the middle and our margins are under a lot of pressure. Over the next few months, if British Steel survive, we can see some price adjustments taking place but nothing too dramatic. The question facing us all is will British Steel survive? If BS does not survive then we could see a raid on our stocks as the larger fabricators, who rely on BS for their just in time service, try to buy steel from stock. Tomrods as a company want British Steel to sur-vive as we need our manufacturing base, but only if the non-profit making group companies are closed down. Fortunately Tomrods does not rely on supplies from BS and we can contin-ue taking long term care of all our existing customers.
We await the outcome following the liquidation of British Steel.
Many things have happened since our last bulletin and you can catch up with these by read-ing previous news items. Despite some fierce competition and low margins we are still, eve-ry month, producing real profits. The Tomrods team is still giving our customers an out-standing service and despite a slowing down of the market we are still ahead of 2018 des-patch levels. I am very proud of the way everyone at Tomrods has reacted to my retirement and we continue to plan for the future. On a personal front I have finished my cancer treat-ment and I am on the maintenance period, I still play golf, do the garden, go to the gym, walk into town and each month eagerly await the sales figures. I must thank everyone at Harrogate hospital, they have been brilliant, but the biggest thank you must go to my wife Julie who puts up with me as I get in the way around the house. Now that we have our new website up and running we will try to keep you in touch more regularly with the market and any other relevant developments .
Thanks to all our customers, suppliers and friends for your continued support and if you have any comments please send me an email or call the office on 01845 528200.
All the best