What Influences the Price of Steel?
Steel building pricing is more complicated than you might assume. Steel is a global commodity, and that means the price of steel varies on a daily basis. Prices can be influenced by hundreds of factors including:
- The strength of the United States dollar
- Demand for steel used in any product
- Trade tariffs
- General condition of the world economy
- Natural disasters
- Wars and other political events
The Pricing Factors You Control vs External Influencers
While some factors that influence the cost of your metal building like the size and the components added to create a custom metal building are within your control, many of the ingredients that influence the current price of steel are external forces. This is why we continually review the world’s most authoritative sources on steel prices and publish our forecast. Knowing the current facts will help you determine the right time to lock your steel building price.
Today's Current Steel Price
According to tradingeconomics.com there was an almost 100% increase in the price of steel globally from May 2017 to December 2017.
Will USA Steel Prices Follow the World's Lead?
As demand increased, so too did supply as improving economic conditions worldwide contributed to a better-than-expected year for the steel industry. Those conditions contributed to higher steel prices globally (above), although prices stayed relatively stable in the United States (below) over the full year.
Robust Prices Expected in the United States
Why does this matter? As the world’s leading steel supplier decreases production, demand in the United States continues to rise. As T.V. Narendan, Chairman of the Economics Committee at the World Steel Association, echos: “We expect global growth to moderate in 2018, mainly due to slower growth in China, while in the rest of the world, steel demand will continue to maintain its current momentum.”
When Should You Lock Your Building Price?
If you’re looking to invest in a steel building, it’s important to take notice of these factors as they will greatly affect the price of your building. Steel prices, despite the recovery in the latter half of 2017, are still historically low. Locking a price in at the current low steel prices is a great way to capitalize on the market and maximize the value of your steel building.
When we talk about locking a price in, we are referring to an advantage General Steel offers to potential buyers. Upon signing a contract to buy one of our steel buildings, General Steel allows you to lock the price of your steel building kit for up to 90 days. Locking your price allows you to avoid the big swings in steel pricing and a surprising price tag on delivery day. As a successful business for more than two decades, General Steel has the stability and buying power to offer the highest quality product at a price you can afford.