Do you ever feel like Bill Murray in the film Groundhog Day? Well here we are again, further scrap and alloy surcharges have been observed from global steel mills from July to August.
As we wince at the thought, we’ll try to keep this as brief as possible; the most significant increases consist of…….
These August increases from the mills are having the biggest impact on nickel based steels. 817M40 (EN24) & 826M40 (EN26) saw increases of approx. £40/tonne as a result, whilst the 655M13 (EN36) increase was just under £60/tonne.
Mill lead times for hot roll bar are now generally mid/end of Q2 2022; a lead time of up to 10 months in some cases. This contrasts with typical lead times of 3-4 months in a flat market. Lead times for forged bar are slightly better at mid Q1 2022 but still representing an extended position.
This is being driven by both increased market demand and continued speculative purchases as distributors and OEM’s alike focus on securing future supply.
Export easing policies from China and Russia are also driving an increased demand via European mills.
Needless to say we are all finding these times challenges. If you need a friendly Hillfoot arm around you to support or answer any questions, don’t hesitate to drop us an email or pick up the phone.
You can also click here to find out how the changes have affected the surcharge for specific steel grades.