British Steel increases the supply cost in June 2021 by a further £80

Steel Supply Demand in 2021 is set to grow substantially and both construction and manufacturing.

Steel material costs have reached record highs compared to the last decade.

This is due to the release from COVID lock down and many countries planning to inject huge financial stimulus packages into construction projects to effectively build countries out of recession.

Some views are that we are about to experience the biggest economic boom since the post WWII.

In the UK local market the difficulties for Liberty Steels regarding their financial situation result in uncertainty for many steel manufacturing facilities in the UK and will remain badly restricted.

Demand in the EU is forecast to have fallen by 13% in 2020 and to rebound to +13% in 2021 and whilst quick transition in apparent demand can occur steel producers just cannot react so quickly.

Safeguard quotas will start to be exceeded on many products resulting in large duty payments that UK trader are already starting to experience.

Predictions earlier in the year was that Steel would peak at over £1,000/ tonne, on current path this appears to be correct.

Futures market for Steel and Lumber has shown a sharp correction (downwards) in the trading market. Whilst this does not guarantee a correlation with the supply market, it could indicate that the steel market may correct itself next month.

Longer term, Construction spending by the Public sector, BREXIT and limited supply in the UK is likely to corner the market in the UK.

Imported steel into the UK is at risk of higher tariffs, limited local supply and a high demand across the world, could maintain a high steel cost for 2022.