Steel is a commodity which is widely known for its price fluctuations, and there are many events that see the price of steel move up and down. Everything from the time of year, to the basic supply and demand, will have an impact on steel prices.
Take a look at some of the major influences on the steel market, which work to affect the price of steel.
Energy is one of the most important factors in the pricing of steel, as it is used in almost every facet of the industry, from steelmaking and transport to construction. Oil is the most commonly used fuel in the steel industry, so when oil prices are low, so are finished steel products, and obviously, when oil costs more, steel becomes more expensive.
Supply and demand
While this factor is not unique to steel, it is still important nonetheless. As demand for a product increases, so too will its price.
Time of year
The time of year is significant in most industries, especially in the price of steel. Weather can affect shipping, and other modes of transport and seasonal highs and lows can affect the demand for new products.
In many cases, materials and products in the steelmaking process may need to be imported or exported, so shipping is essential. Of course, naturally, all the costs involved in labour, shipping and transport will affect the final price of steel products.
Iron ore availability
The cost of raw materials is a significant factor in the price of steel. Iron ore, coal and scrap steel are all important for creating new steel. While scrap steel comes from other buildings being torn down, iron and coal are dependent on the mining industry, which in itself has its own set of complications.
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If you have any questions about the price of steel or would like to order quality steel that is fabricated to suit your unique needs, contact Steel Fabrication Services today. Our team of expert structural steel fabricators have the experience and knowledge to answer any of your questions and will ensure that you find the best solution to suit your needs. To contact us today, simply call, fax, email for information or a steel fabrication quote, or drop by our Brookvale location.
Want to learn more? Check out some of our other great articles about steel!