Here at Roller Die, our awareness of steel market activity is crucial. Many of our blog entries are dedicated to the topic. Our knowledge dictates our timing — the goal is to purchase when prices are lowest, to pass savings on to our customers. Plan your projects soon; steel prices are changing. Please see the letter below from our vendor, Kenwal Steel, regarding an anticipated price increase:
“…All of the other mills advise that there are more increases coming. I hope that everyone has their needs covered. If not, and you are contemplating on when to make your next purchase (or are possibly waiting to see if the increases hold) please consider the following:
January 11, AK Steel announced a $60/ton increase for all new orders for all products. That increase is real and not going away.
There are no March Cold Rolled tons available out there right now. All Cold Rolled orders are being acknowledged for April.
There are very limited and possibly no February hot rolled tons available. We are likely looking at March for Hot Rolled as of today.
Mills are currently paying $395/G-ton for busheling. (Don’t sell your scrap until next month!)
Demand is currently stronger than anticipated. End user forecasts in many market segments show higher than anticipated demand in the next 90 days.
In the eyes of the steel mills: The current “higher than anticipated” levels of demand has filled their order books for March faster than they anticipated, combined with increases in raw material costs (i.e. scrap) validates the current and forthcoming price increases.
Regardless of which service center you purchase your steel from, it would be my suggestion that everyone start thinking about securing their April needs now (for month-to-month or spot buyers) before this thing jumps up again.”
Roller Die is working to ensure our steel inventory stays consistent and that prices remain low. We are confident in our strategy; please contact us today to start a successful project.