Shortage In Steel Causing an Increase In Steel Prices

05 Jan Shortage In Steel Causing an Increase In Steel Prices

The economic conditions in 2020 have been a roller coaster, and the beginning of 2021 looks to be the same. The manufacturing industry is finally bouncing back from the beginning of the pandemic and the associated shut downs, however the raw material supply has not been able to keep pace with the current demand. This is causing an increase in raw material prices for steel, stainless steel, and aluminum as well as many others. It is impacting all forms including coil, sheet plate, and bar stock. Based on these market conditions, MWG will be reaching out to customers in early 2021 to discuss the individual Customer situations.

Below is an overview of the market and price increases:

• Demand for raw materials is greater than the supply of raw materials
• Increase in COVID-19 cases is causing a decrease in outputs from mills
• Lead times are reported to be into late January or February of 2021 as there are no spot tons available
• US Steel raised base prices for HRC to a minimum of $45 per cwt and domestic HRC prices could push as high as $55 per cwt

Click HERE to learn more about the increase in steel prices.