Unreliable Future Steel Building Prices
Why Commodity Pricing is Volatile
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 2020
Building Prices 2021
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
The price of steel is determined on a global scale. If there is a construction boom in South America or Europe, it will draw down the American steel supply as well as the global supply. More demand and less supply results in higher prices.
We are constantly working with the plants to get the best prices for our customers. We also allow you to lock your price for a negotiated amount of time, sort of like locking an interest rate on your mortgage.
Some companies will quote you a price far below the current price of the building. They do this knowing they can simply change order you later once you’ve signed their contract.
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.