Steel Price Rise June 2014

chart-going-up

Up She Goes, steel up by around 5%

Here we go with another round of price rises to steel products like sheds.
This price rise is largely due to increased costs from the major steel supplier “Bluescope Steel”. Other factors are also adding to this general industry price rise like increased freight costs.
We have received notice from Lysaght that their price rise will take effect on the 30th of June 2014. We have also heard that Stramits prices will be going up around the same time. Other roll formers Like Metroll and Fielders that use Bluescope Steel will likely follow suit since their supplies will cost more.

What does this mean for Steel Sheds?

It means that they are probably going to go up in price because the expected price rise is 5.25% and this is a big chunk of margin to swallow.

When do sheds go up? 

Shed prices usually go up 2-3 weeks before the material price rise due to lead times and production queues to manufacture. Remember that you usually have only locked a price in when you pay a manufacture payment…not when you pay the engineering deposit… you can read more about this in a previous article we wrote here.

What should you do?

If you are buying a shed in the next 3 months then get a wriggle on, get your quote, get your paperwork into council so you can get your approvals in place before June so you can get your order into production before the CUT OFF dates. All shed sellers should be able to provide you with a firm cut-off date for orders to beat the price rise.

If you looking at buying steel for projects (not a consolidated shed kit then you should probably get your order in two weeks before the 30th of June 2014 so you don’t find yourself too far back in the backlog to get your delivery out before the steel price rise cuts in. Remember pricing is based on delivery dates, not order dates.

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