• Unreliable Future Steel Building Prices

    Why Commodity Pricing is Volatile

Why Future Steel Prices Are Inconsistent

Commodity markets are among the most volatile in the world, and steel is often right in the middle of that volatility. Steel prices can change quickly, and those changes can have a huge effect on the costs of steel products, especially steel buildings. That can be confusing for consumers who are accustomed to purchasing products at a set price. When it comes to steel buildings, unreliable future steel prices can change the price of a building within days – surprising prospective buyers unaware of the factors at play. If you’re wondering how all of this works and ways to manage this risk, we’ll take a closer look here.

Current Steel Price

Economics 101: Supply and Demand

It may sound simplistic, but the steel industry, as well as the commodities market as a whole, is largely dependent on supply and demand. As demand surpasses supply, prices rise. As supply surpasses demand, prices decrease. But for commodities such as steel, the relationship isn’t as cut-and-dry, as supply can lag behind demand due to the practical demands of production. The imperfect relationship of supply and demand combined with a tenuous political climate has contributed to a current state that no buyer likes to hear: uncertainty.

Supply and Demand 101

Uncertainty of Future Steel Building Prices

The steel industry is in a constant state of flux, but especially so in 2018 with the market being the focal point of an escalating trade war. With the March announcement of 25-percent tariffs on all imported steel, economists are still unsure of the short- and long-term effects of the significant policy change, creating a sense of uncertainty surrounding an already volatile industry.

Building Prices 2021

30x50 $40,000-$45,000
50x100 $90,000-$100,000
100x100 $200,000-$225,000

Building Prices 2022

30x50 $30,000-$46,500
50x100 $100,000-$155,000
100x100 $200,000-$310,000
Opposing Opinions on Future Prices

On one hand, the price of steel has increased nearly 40 percent since March. On the other hand, some experts are projecting a price drop as early as the end of this year. All in all, this most recent episode is just the latest example of the instability of the commodities market and how it can affect the final cost of metal buildings.

Top 3 Pricing Questions

Working with General Steel

The uncertainty of future steel building prices has led to reputable companies in the industry offering safeguards against the instability. General Steel, the most experienced steel building company in the industry, is dedicated to making sure you understand the market while also offering the most experienced team to guide you from design to procurement and completion of construction. Above all else, to see how the steel building company is handling the current fluctuations in the market, we recommend reading through the company’s most current reviews.

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Navigating the Buying Process

We don’t want you to be surprised when you receive an estimate for your steel building. That’s why our project consultants discuss the current price of steel as well as any market conditions that could cause a sudden fluctuation in price.  As you move through the buying process, we’re here to help you navigate any potential pitfalls to ensure you get the building you need at the price you expect.

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