The demand for steel keeps increasing and along with it the price. We have never seen this before in our industry which triggered us to do some investigating.
Now multiple countries across the globe have followed in China's footsteps launching hefty economic recovery projects that include major infrastructure initiatives that chew through A LOT of steel. China alone in 2020 increased their imports by 150% which you can check in the Nikkei Asia. If you look more closely into this report, you will find that the prediction of steel prices are set to continue to increase until we are in 2023.
Another significant factor to these price rises is the demand for coking coal or sometimes referred to as metallurgical coal. In February of this year, we felt another price jump but this time in the cost of coking coal which is a major element used in the production of our great Australian steel. Australia is the #1 supplier of this resource which means our coal mines have benefitted greatly but also mean that we feel the price increase in our corner.
The third major contributor to these ongoing price rises is the major disruptions caused by Covid-19. Steel manufactures all over the world either closed their doors or heavily reduced their productions in response to the pandemic. Many of these factories are still yet to resume to their usual production schedules meanwhile that demand for steel has hit unprecedented levels. This is just one extra factor we've found to be behind these steel price rises.
These 2 bumps in the road plus the disruptions we’ve felt in the market due to Covid-19 are just some of the factors we’ve found to be behind these steel price rises. Covid-19 sure has caused some major disruptions to all industries internationally and we are afraid these price rises won’t stop here. The demand for our famous Australian steel just keeps growing. At The Shed Company, we will always try our best to keep you well informed on the situation evolving in front of us.
To get the best price for your new project, make sure you lock in your quote with your local shed specialist. To do this you need to have paid your deposit in full (i.e. 50% of your purchase price) and your building moved to manufacture. This means you will get the cheapest price possible for your new steel building.
