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Steel prices have continued to rise throughout 2021
For those of you who follow the construction industry news, you will know that price of steel has continued to rise throughout 2021. Fortune magazine quoted that ‘Since March 2020, steel prices are up a staggering 215%’, and this figure continues to rise (see Figure 1 graph from green building elements). As such, McGregor Group have had to adjust to the ever-changing steel climate.
What’s caused this rise?
Multiple factors have contributed to the rise of steel prices. Below are some of the main ones:
- Rise in demand has led to a worldwide shortage and price increase.
- Freight shortages due to Brexit and Covid19.
- Covid19 – Although we source our steel from the UK, the knock-on effect of Covid19 on China’s supplies has meant it’s had a worldwide impact on the entire supply chain.
- Brexit –The uncertainties of Brexit has caused issues with imports, taxes etc.
The cost of steel has been increasing since 2020 (see figure 2), however, we at McGregor Group have held steel in stock consistently, allowing us to fix our prices for our customers. With greater demand for our products, we are now ordering more steel at the newly increased costs to continue serving our customers.
Steel is a fundamental part of every sector of our business. From poultry housing (read this useful article in Poultry Business) to our aircraft hangars, each structure requires steel.
What does this mean for you?
We are still able to buy from our main steel supplier, however, prices have understandably gone up. To ensure that we still offer the best steel in the business as part of our product range, we will be increasing our prices in line with this inflation trend. As this is moving so quickly, we have also made the decision to change our quotation terms to 7 days instead of 30.
If you have any further questions about how steel prices might affect you, please call one of our team on 08082563210 or contact us via firstname.lastname@example.org.