As the winter weather begins to melt away, construction companies are preparing themselves for a busy spring season. From office buildings to sporting arenas, spring is the time of year where construction companies kick into high gear. The preferred material used by many construction workers is pre-engineered steel. Still in high demand, steel is the primary choice for many contractors as it is strong, durable and versatile. Due to the high demand for steel, the price of steel continues to rise.
Steel Building Prices Forecast
Steel prices are expected to hike by up to 66% this year, according to a report by analysts and top executives, a burst of price inflation on a scale that the steel industry has experienced just once in the past seven decades of modern steel records. If this forecast turns out to be true, the rise in price will become the second-biggest jump from the 70% rise in the year 2004. This forecast indicates that steel demand will continue to far outweigh its supply, a trend that will bring huge fluctuations in the price of steel.
Metal Buildings Supply and Demand
Just like any other commodity, the forces of supply and demand largely determine the prices of steel. When the demand of steel is greater than the supply at a given time, the prices skyrocket, but when the supply surpasses or meets the demand, the prices plummet. However, the supply and demand of steel is not the only factor to take into consideration to understand how the price of steel is affected. Every country enforces different standards for quality and quantity in the manufacturing of steel. Depending on a countries political and economic stability, the price of steel production may raise or fall greatly on any day. Another element that affects the price of steel is nature; natural disasters are unpredictable and can affect the production and transportation of steel affecting its supply in the market.
Lock Your Price
If you are in the process of erecting a steel building it is vital to understand the patterns behind the rise and fall of steel prices, as the price of steel will inevitably affect your bottom line. It also goes a long way in helping you calculate the actual estimated building price during the planning of your project. Steel prices often include building materials, foundation and construction, transportation, depending on the agreed terms and conditions with your contractor.
When you contact Anthem Steel ask about how you can protect yourself from the volatile steel market. You will find that Anthem’s price protection program will help you make a sound investment.