This year has seen dramatic fall in Global Steel Supply. At Delphi Steel Buildings, we have been working hard to absorb costs wherever we can and are hot on the heels in keeping our customers updated with what’s going on.
We can blame the supply crisis on a number of factors, the first being (of course) the Covid-19 pandemic. Steel is an essential product and therefore production lines have stayed open. However, the demand declined rapidly at the start of the pandemic when non-essential construction sites and various production lines had to close. Now that many of these have opened up again, demand has soared and inevitably outstripped supply. Now customers are paying more and waiting longer for materials they need.
Another culprit which has gained far less coverage has been the weather. A particularly cold winter disrupted scrap collection and delivery of ore and scrap in Europe and North America at the beginning of the year. At around the same time, shipments from Australia and China were also affected by bad weather. On top of this, China introduced emissions restrictions in key northern steel-producing provinces. All these factors have added to a tightening supply and a boost in raw material prices.
It is a very difficult time for both suppliers and customers. Many suppliers are quoting for goods on application making budget planning very difficult. However, the forecast is looking promising. As the factors mentioned above ease and steel production, imports, and exports regain momentum, global steel supply is expected to rise towards the end of the year. More informtaion here: https://ihsmarkit.com/solutions/steel-forecast.html