At Boyd Metals, we continuously evaluate the market and consider what is constantly changing in an ever-developing market.
Where the Steel Industry has been
Global shortages over the last two years have notably impacted the steel industries. Although our economy shows signs of turning around, inflation is the most important topic to follow as it pertains to changing prices in the steel industry in the US.
Just two years ago, steel was selling at $440 a ton. Today someone can expect to pay $1468 for one ton of steel—roughly three times the price in 2020.
In addition to Covid-19's impact, the war between Russia and Ukraine has greatly affected the steel industry. Russia and Ukraine are two of the most considerable suppliers of Pig Iron, a highly valued resource in steel production. Captial.com states that Russia and Ukraine make up 60% of the United States Pig Iron imports. Thus, this decrease in supply contributes to the rising costs of steel. Depending on the longevity of this conflict, this may continue to be a problem with more long-term repercussions.
Where the Steel Industry is Going
According to Chris Walsh, Purchasing Manager for Frazier, the market currently seems to be in a 'wait and see approach. More specifically, he states, “There are still a lot of fluid factors. We are awaiting what type of impact comes from the new government infrastructure bill’s demand on the industry. The automotive industry historically makes up a large percentage of yearly steel consumption; if their microchip shortage is remedied, they will resume buying steel at higher volumes which will only increase demand.”
Preceding the conflict between Russia and Ukraine, Fitch Ratings predicted steel prices to decline, estimating $750 per ton in 2022. Due to profound changes and uncertainty within the last few years, it’s difficult to predict the future of steel prices confidently. That push and pull have yet to strike a predictable balance, but knowing what issues are at play will help industry professionals more accurately gauge where this is going based on the unfolding of current events.
Our Goal in the Steel Industry
While steel production appears to be unpredictable, one of the main priorities at Boyd Metals is to find ways to stay ahead of market trends and fluctuations and be a resource if there are shortages on the horizon. Our commitment to our clients is a part of the Boyd Difference, and we’d be happy to book a time to discuss specific questions and concerns. As always, our team is a resource to help you with planning, budgeting, and delivery that keeps your business moving.
Interested in learning more about steel?
Download our free guide to discover some of our favorite steel facts! Inside you'll find surprising information covering:
- Iconic steel buildings
- Recent advances in the industry
- Steel's impressive strengths
