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 several factors, including natural disasters, the strength of the American dollar, and the general condition of the world economy.
Domestic Factors
- The strength of the United States dollar
- Demand for steel used in any product
- Trade tariffs
Global Factors
- 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.
Steel Prices in Hindsight
2018 Steel Price History and Events
Discover why a drop in steel prices was temporary and how tariffs changed the landscape for this commodity overnight.
2019 Steel Price History and Events
Learn how political turmoil and stronger than expected demand in 2019 lead to the second straight year of higher than predicted steel prices.
Today's Current Steel Price
According to tradingeconomics.com steel prices reached a peak in May 2019 and while prices are relatively low today, prices are expected to remain volatile as evidenced by the spike in December 2019 and could easily return to that near historic level.
Why Steel Prices Are Measured in Yuan
Trading Economics presents the price of steel according to the Chinese currency called Yuan. This is primarily due to the fact that China is the world’s largest producer and typically the biggest consumer of steel. To convert the steel price from the graph, simply use this currency converter to see the exchange rate between Chinese Yuan and American Dollar.
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 it will greatly affect the price of your building. Steel prices have been historically volatile, and the events of 2019 further supports that trend. Furthermore, as we noted, lead economists like Al Remeithi project that the industry will continue its consistent growth. All these factors make locking in a building price at the current steel price the most important step in maximizing the value of your steel building.
When we talk about locking in a price, we are referring to an advantage that General Steel offers to potential buyers. With just a small deposit on one of our steel buildings, General Steel allows you to lock the price of steel that you’re paying for 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.