How Steel Prices Are Determined
IM Steel is a leader in steel plates and product distribution to industrial businesses nationwide. In addition to providing a high-quality steel product, we pride ourselves on keeping our prices competitive and offer bulk rates. For businesses hoping to place an order with us or learn more about our pricing by weight, it’s important to understand how steel prices are determined. Here’s a look into the factors that impact steel prices and how to learn more about pricing from IM Steel—
What Factors Impact Steel Prices?
There are multiple market factors that can impact the price of steel. These factors include, but are not necessarily limited to:
- Supply and demand. The laws of supply and demand have a strong influence on market prices. The theory states that when supply is high and demand is low, prices will be low; when supply is low and demand is high, prices will be high. If steel is a hot commodity and there is limited supply, you can expect prices to increase.
- Industry trends. Another factor that can impact steel prices is an industry trend. For example, if a specific industry that relies on a lot of steel is high in demand (i.e. auto manufacturing), then the demand for steel will likely go up, as will the prices.
- Costs of materials. Recycled steel is made from scrap metal. If the costs of scrap metal are higher, then the costs of steel will be higher. Recycled steel is usually less expensive than virgin steel.
- Costs of shipping. If the costs of shipping materials to manufacture steel or ship steel increase, the overall metal prices may increase to absorb that cost. For example, in a market where gas prices are exceptionally high, suppliers/manufacturers/distributors may increase the cost of their product to help offset gas costs.
- Time of year. Weather, seasonal highs (i.e. a peak in construction during the summer), and holidays can all impact supply and demand and related prices.
Get the Best Prices at IM Steel
If you’re looking for affordable steel prices paired with great customer service and high-quality steel products, call IM Steel today. We are a leader in steel plate distribution throughout Illinois and the surrounding areas. Not only do we offer high-quality carbon steel products, but we also are able to stage and fill orders within 24 hours of receiving them, ship multiple gauges all in one truckload, and cut plates to length at no drop to the customer. Reach out to us today to learn more!