As a business, we want the materials we use at the best quality and price for our customers. This is why we have kept a close eye on the fluctuation of steel prices over the last few years. In March 2021 we saw steel prices soar from around £500 per tonne to over £700 per tonne and in October 2021, we reported on a further rise in prices throughout the year, reaching an all-time high in July 2021 as the country re-opened following the COVID-19 pandemic.
Though as a country we made it through a very tough few years both in health and finance, 2022 continues to offer up new challenges – including foreign conflicts – for industries using steel as one of its main materials.
In this article, we take a look at what is affecting the current steel market, and how Laser 24 are continuing to support our customers through these uncertain times.
Are steel prices still rising?
For now, yes.
Statistics collated by the Department for Business, Energy and Industrial Strategy report that fabricated structural steel increased in cost by 35.9% over the last few years.
UK Steel Director-general, Gareth Stace stated that energy costs and supply side challenges mean the sharp price rises already seen this year could be “just the start”.
According to Kallanish Commodities, a ton of rebar steel, commonly used in construction, was worth approximately £841 in February 2022. In April 2022, these prices have soared to an estimated worth of £1,298 per tonne.
This is the result of factors out of the control of material suppliers and fabricators such as ourselves.
The good news is, Steel Analyst at CRU Group, Matthew Watkins, has a more encouraging opinion that “this is a spike, not a plateau” he continues, referring to possible pre-war price levels, saying “we’re moving into a phase where prices are dictated more by logic and less by emotion and panic”.
What has impacted steel prices?
Britain’s steel industry has struggled for more than a decade as cheaper Chinese steel flooded the global market. As the conflict between Russia and Ukraine continues to unfold, metal producers are reporting price spikes as the war causes a domino effect on UK steel prices and the construction supply chain.
The EU has enforced certain economic sanctions against Russia prohibiting trading and trade to certain Ukrainian regions, such as the non-government-controlled regions of Donetsk and Luhansk, as Ukraine’s steel production halts due to the war.
As the world’s fourth-largest steel exporter according to the International Trade Administration, Russia is accountable for supplying steel to more than 150 countries. Meaning that trading sanctions will have a detrimental impact on the construction supply chain.
Steel price forecast
Despite the turbulence caused by the war in Ukraine, World Steel Organisation (WSA) forecast global steel demand to rise in 2022 and 2023. However, WSA warned that the projections are subject to high uncertainty due to market volatility.
British Steel said that rising energy costs and inflation are a cause for concern in the steel cutting industry.
What are Laser 24 doing to support customers?
As a leading UK laser cutter, Laser24 are doing everything we can to help to drive costs down and ensure our customers receive a competitive price for our services, specifically laser cutting and metal folding.
Due to the volume of material we purchase, coupled with continued efforts to build upon strong relationships with our current suppliers, Laser 24 are confident that we receive the most competitive prices, superior service levels, and finest quality.
Lase 24 are one of the top laser companies in the UK and are in a prime position to be your perfect production partner.
Get in touch today
Whether your project requires laser cutting for Engineering, Construction, Marine, Medical, or Architectural industries, Laser 24 can help you. Our top-of-the-range laser cutters and press braking facilities provide you with the highest quality results from laser machining.
We offer a range of services for a variety of materials, such as stainless steel laser cutting and aluminium laser cutting.
For more information on the laser cutting and metal folding services we provide across Essex, Kent, London, and surrounding areas, or to find out how we can help you with your next project, contact our team on 01268 733 883, or email [email protected], or fill out a contact form here.
