Steel prices have soared over the past two years, due to several different factors. Of course, the most common villain—and not just in the steel industry—is COVID-19. Skyrocketed prices sent contractors and builders scrambling for budget friendly options such as the ones offered right here at Texas Iron & Metal. We’re talking, of course, about surplus steel.
The latest numbers show that some steel prices are finally starting to soften, meaning Prime steel could soon be within many budgets again. With the option of made-to-order steel on the horizon, why would contractors and builders still consider Less-Than-Prime steel?
Well, we like to think our LTP steel would always be an option, regardless of how affordable Prime steel might someday become. What would convince you to buy surplus steel now that steel prices may be softening?
Supply Chain Constraints
Even with steel prices easing back down, supply chain issues are still plaguing the whole world. You may be able to pay a little less for Prime steel now, but you’ll still have to wait just as long to receive it.
A few different factors contribute to the supply chain breakdowns. First is the surging economy, which has driven many buyers to bulk up on equipment and materials that, for more than a year, were either too expensive or unavailable due to a decreased workforce. Second is that decreased workforce, which was affected by the virus as steel producers and shipping employees had to stay home due to lockdowns or infection.
These factors aren’t likely to be remedied soon—at least not fully. Buying surplus steel from a trusted supplier could help you avoid costly supply chain delays.
While strides have been made toward cleaner steel production, the fact is that emissions are a necessary part of making new steel. Fortunately, those byproducts aren’t toxic, and the gases can even be reused to generate electricity. Regardless, the emissions that are produced are harmful to the environment.
By using surplus steel, you can bypass the need to manufacture new steel, which puts you on an eco-friendly list that consumers are increasingly searching.
Prices Won’t Return to “Normal”
Now that production has picked back up—and in many industries, increased exponentially—demand will keep steel prices high. Car manufacturers are struggling to meet demands for new cars, meaning more steel is necessary. A new infrastructure bill that includes $850 million in steel projects will call for 40 to 45 million tons of new steel, adding to the surging demand. Lead times are remaining extended, with many already moving into the new year. Prices may be moving down, but they won’t return to pre-COVID levels for a long time, if ever.
To mitigate the higher prices of new steel, surplus steel is the answer. Plan projects around the steel you can get your hands on right now at Texas Iron and Metal while placing orders for new steel that will arrive when you’re ready.
Our inventory is huge, and we get new stock on a regular basis. Let us know what you need, and if we don’t already have it, we’ll get it. Your job timeline and budget bottom line won’t have to suffer the current and future steel market.