This month roll forming businesses continue to raise prices while demand continues to be strong.
Truecore products, used to make top hats, battens and light gauge steel framing are set to rise by whopping 38-40% for orders delivered after Feb 1st.
Colorbond products are set to rise on orders delivered after Feb 1st by 4-5%.
I believe a lot of builder’s, especially home builders, could be caught out with these high price rises, putting businesses at risk.
We have also been hearing of worsening supply issues across the country and a lack of supply for 3mm plate, 4mm & 5mm Galvaspan, Zincalume, Colorbond Surfmist and C/Z300-400 purlin feed.
All major roll forming companies are now on steel allocations. This generally means they can not purchase more steel than they did last year.
HiTen is well prepared for these price rises. We will be implementing the above steel rises into our software the last week of November.
It’s important to understand how the steel supply chain is moving. For example, Lysaght had foreseen shortages in the marketplace months ago and made arrangements to secure Zincalume products throughout 2022. Their top hats are still supplied in Zincalume, whereas almost all other manufacturers are supplying top hats in blue Truecore steel – now surging up to 40% in the coming months. Also, Lysaght stopped selling roof and wall systems to red iron projects in some regions in August this year to better support the more profitable shed market – Smart!
This means competing roll forming companies are capturing the big roofing and cladding orders that normally would have gone to Lysaght. Their sales have surged. Some as much as 5x last year’s sales. Remember, they are still on allocations, so I believe it is safe to assume that you will see shed and steel building deliveries extended by many, many weeks. Stay informed, speak with your suppliers and don’t get caught out.
Stay ahead of the game. Order your bracketry early, and maybe try to keep some rebar in stock and keep your projects moving forward.
BlueScope has announced the commissioning of a second 160kt Tru-Spec steel coil plate line in Port Kembla this month. It should help with the growing demand for Truecore products in 2022. BlueScope has also invested in new technologies to help identify where bottlenecks may emerge, and it is also considering a new $250M metal coating line (MCL7) to support ongoing demand.
With the largest steel building component supplier base available, HiTen distributors have a choice where to place their orders to beat price rise increases. Before you place an order, call your suppliers and confirm they can deliver your project on time and on budget.
Good planning will help you stay out front of the She’llberighters…
Regards,
Chris Lynch
