Hillfoot bring you an update on the November 2020 surcharges for carbon and alloy steels.
Peter Morris, Purchasing Director, said: “October saw steel prices increased worldwide. The rising cost of raw materials, reduced supply and an improvement in demand are the main drivers for the recent advances in global steel prices. This resulted in scrap prices increasing by an average of £35/tonne, although base process are still expected to remain consistent throughout the rest of Q4.
However, further increases are forecasted for January 2021 as shortages begin to develop in many countries for a wide range of products.
Mill output in the US and EU remains far below current capacity. However, many steelmakers are wary of ramping up their operations too quickly. They fear that demand will decline, as Covid-19 infection rates escalate during the winter months.
A recovery in the automotive sector is underpinning mill order books for the flat products sector in most countries around the world. Car sales have risen dramatically as people move away from public transport.
Moreover, government incentive schemes are encouraging such consumer purchasing. Asian parts suppliers are benefitting from an improvement in export orders. This is helping to offset lacklustre domestic steel demand in many nations."
Click here to find out how the changes have affected the surcharge for specific steel grades, or contact the Hillfoot team for advice on your material requirements, and price and availability information.