Hillfoot bring you an update on the December 2020 surcharges for carbon and alloy steels.
Peter Morris, Purchasing Director, said: “The world steel industry has been savaged by coronavirus-related economic restrictions, rising raw material costs and weakening steel prices during 2020. Mills in all regions recorded disastrous financial results.
However, the iron ore market has been enjoying a robust November, with futures climbing to $127 a tonne on expectations that steel demand in China would remain strong, mainly due to an infrastructure and property boom. On the bullish side, narrowing steel inventories at mills in the world's top steel producer encouraged investors of the steelmaking raw material to push prices higher, which contribute to base price increases in Q1 2021 of around circa 6%.
Scrap costs were rising until this month at 16% higher than 12 months ago. They have since stabilised or softened slightly, and are likely to remain firm into the first half of Q1 2021, as steel demand and capacity utilisation rates improve, particularly in Western 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.