I have had several customers talk with me lately regarding manufactures giving price increases. I have been lucky enough to represent manufacturers who only give price increases when the market demands it. A lot of the time, if we feel the market will fluctuate back to current prices, we will eat the temporary material increase to avoid re-quoted every couple of month.
I read an interesting article (part of which is below) regarding the steel forecast. I particularly like bullet point 3… hopefully we will have a stable market though 2013! Fingers crossed…
Looking forward, independent estimates of future commodity prices were obtained from leading sources such as the World Bank and the Energy Information Administration. These forecasts were then plugged into the mathematical model obtained above. The result of this econometric modelling approach indicates that:
- the forward projection is for maintained relatively high future hot rolled coil and steel rebar prices, with
- average prices remaining well above pre-crisis levels from now to 2015
- prices staying relatively constant across 2011 to 2013
- further price rises expected in 2014 and 2015, which will raise f.o.b. hot rolled coil / reinforcing prices some $150 per tonne in the medium-term
- but without return to a scenario involving f.o.b. steel prices at $1000-$1100/tonne [prior to 2016].
Article Source: http://EzineArticles.com/6305454