Why Are We Experiencing So Many Price Rises?

Steel prices are constantly changing as the metal marketing is varying, but since mid-2020, supply has dropped down enormously, and the prices have improved in a better way. Discover why it is happening and what you can expect when you are buying or selling any sort of product in the roofing industry.

If you are in the metal industry or any other industry that deals with steel in any way, you must be probably aware of when steel prices will rise and what you need to do. However, it is not just a small price rise, but the steel costs are rising extremely higher, impacting everyone who is buying and selling steel products. Do you know why the prices are constantly rising and what actions you can take to protect your business better?

For years, The Haggarty Group has been providing steel products to the wider customers out there, and we have experienced price fluctuation. However, we are constantly trying to avoid price rises where it is possible, and we are even negotiating with the suppliers all the time to get the best possible prices for the customers.

Key reasons for price rise in industry –

Currently, Australia is going through an ongoing construction boom, and this compound, with a massive amount of factors, has resulted in extensive labour and scarcity in the material. Further, it has severely impacted the consequent rises in prices of building-related supplies, and the compounding factors that are affecting them includes –

• Increase in building activity that is happening due to the builder’s scheme set up by the Federal Government, and other causes impacting the industry prices and supply
• COVID-19 pandemic related delays have augmented the logistical costs as well as the impact of a pandemic on local precedence.
• A reduction in timber production due to bushfires, which has destroyed a wider amount of local hardwood and softwood, and reduction of expenditure in the local timber industry
• A reduction in the building material imports from offshore suppliers – due to the constraints on international freight costs and shortage in production.

Final Thoughts on Steel Marketing Updates –

When it comes to the steel shortage and price rises that we all are experiencing in 2021, the best thing you can do at this time is communicate as much as possible with your suppliers and potential customers.

It is best if you can do the following –

• Determine what your buying limits can be and how your historical purchases are going to impact your purchases for the metal materials if you are going to buy now.
• Be upfront with the customers about the state of the steel industry, and in fact, you can get benefited from considering a few talking points prepared when it comes to consultation, meeting, or any other interaction.
• You can even consider the provisions you can add to your contracts and protect your business while ensuring that you are not losing profits.
• Be understandable that everyone worldwide is going through the same problems and stresses.