Galvanized Steel Pipe - photo: http://smallbusiness.chron.com[/caption]Galvanized steel prices may begin to rise again as construction and automobile manufacturing begin to recover. According to Metal Center News - a trade publication for the metals distribution industry (centers that warehouse, process and distribute carbon and stainless steels, aluminum and copper and brass) - earlier this year, "demand for galvanized steel continues to suffer from a weak construction sector. Despite price hikes announced for January and February, suppliers are concerned that new and restarted production capacity will put downward pressure on pricing in 2012."
This could translate into lower prices on galvanized fence products for us, but contrarily, the construction market has been showing some recent signs of growth. Bill Sternard, executive vice president of Viking Materials Inc., Minneapolis states, “I’m not saying it is picking up significantly, but the numbers are improving.”
The automotive market’s growing need for galvanized steel is a whole different story. “We are seeing demand strengthen as automotive builds recover,” says Jim Mortensen, general manager of automotive sales for Dearborn, Mich.-based Severstal North America.
North American automotive production is expected to reach 13.8 million to 14.0 million light vehicles in 2012, up from just under 13 million in 2011, says John Anton, director of the steel service at IHS Global Insight, Washington, D.C. That’s a major improvement from the 8.6-million-vehicle pace at the depth of the economic downturn. Anton expects annual auto industry output to return to 15 million vehicles by 2013.
As we all know prices are affected by supply and demand. Earlier this year it was reported that major steel suppliers had announced plans to raise galvanized prices by $80 to $110 a ton in three separate rounds, two effective with January shipments and the other with February shipments.
Richard McLaughlin, steel practice director for Hatch Beddows, Pittsburgh inferred that prices could rise significantly, “after the presidential elections and... banks become more confident about lending money” .
So if you are considering galvanized chain link fence products, you might want to make a move before November.
Chain link fences are pretty easy to install, so it is not yet too late to get a move on on galvanized fencing before the price increase?
ReplyDeleteHey Jasmine, as you know the prices are always fluctuating, but steel is a limited resource and it's probably not going to get less expensive any time soon - at least not in US dollars. Thanks for asking. - Mike
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