Thread: steel price increase

Its going to keep going too. Another 30% rise coming up soon. Every day we read about BHP and Rio getting record prices for iron ore and the coal miners selling coke to China for 50% more than last year i= ts no surprise that steel prices are rising.

What will really kill us is when the raw material price increases flow thru on consumer goods. No local manufacturing anymore so we rely on China.

One 250 tonne off road hauler consumes 2000 litres of diesel in a 12 hour shift, times the fleet of BHP ore haulers throughout their mines, thats just the trucks, ancillary equipment uses more or less depends on the engine size and the work involved comes down to costing getting the product out of the ground, the increase is justified. Energy consumed in making the product in this country plus haulage, wages and a host of other bits and bobs all add up to the increase in steel prices. Would rather pay $16 for the length of steel then forking out for 2000 litres of diesel.

D D

Originally Posted by wonka

today $16 per length,the salesperson told me that they have had a 25% increase, more like 34%. Curious to here from other people as I think it is a huge increase.

Sounds reasonable !

I got a price today on 25 x 25 x 3 SHS to build a stock crate frame for a ute.

A single 8 metre length (I need 3 ) was $224

The last time I built one (in 1986) they cost about $27 each.

This is in Hobart, but surely freight can't be THAT much?

Hey Gristle,

I needed some similar steel recently and went to Robot Trading - have bought of them in the past and they are about the cheapest here - Melbourne - don't know if you have some local there...anyway, they had some special "cheap" steel square tube which was about $30 a length - less than half the price of usual so I got some - bad mistake........very hard to get a start with the arc welder and when it did - spat everywhere and sent spark showers in all directions...even with the correct amp setting and rod gauge...also very difficult to get it flowing once started - just fizzed and spat like mad......should have realised first when I cut it - grinder blade went through it like butter...evidently it's made in China and from very poor grade material - suppose that's why it's less than half price of local stuff....still, if your specs aren't that tight and you don't mind extra effort then it may be the way to go..........think next time I'll stick with local stuff......

A bit of an update to my particular needs - the quote of $224 per 8 metres was from Onesteel.
A call to Smorgon Steel gave a price of $88 for 6.5 metres ! That's a bit closer to reality .

There was no discussion of the origin of the RHS, but for my needs, there's no contest.

My partner works as part of the playground manufacturing business, and tells me that aluminium is now cheaper than steel, since the last 2 increases this year.

Gristle are you sure there might ot of been a bit of misscommunication with onesteel and your quoted price was for 3 lengths not 1.

Originally Posted by pipeclay

Gristle are you sure there might ot of been a bit of misscommunication with onesteel and your quoted price was for 3 lengths not 1.

I can't be sure - the quote was from a member of "Admin" and took several minutes to get.

I was so stunned by the reply that I staggered out of the office in a daze

It's a moot point, I don't like dealing with people who don't understand how the system works.
What if I'd just paid the money because I thought that was the going rate ?

If you had of just paid without letting your fingers do the walking I would say fair enough.

The Mining shovels that are built by the company I work for have increased in price by 26% due to increase in steel prices. ( about $5 million increase.)

The funny thing is the Iron Ore mines that are placing orders and charging more for the ore are complaining that the machine price has increased!

woodcutta

Gristle,

Try Premier steel. They've been consistently cheaper than Smorgan everytime I've gone to buy steel over the last couple of years. You can find them in Derwent Park near the old railway.

Originally Posted by acton

Gristle,

Try Premier steel. They've been consistently cheaper than Smorgan everytime I've gone to buy steel over the last couple of years. You can find them in Derwent Park near the old railway.

Cheers Acton, Premier have 2.5 mm (as opposed to 3 mm at the other places) for around $81.50 per 6.5 metres

Still a bit of a fright when you need a few lengths

A job I am working on they are pre-ordering 80% of the steel now as they figure a 250% increase in the next 6 months.

Does that sound right???

We are talking heavy steel sections of structural steel and about 400 tonnes pre-ordered.

Gotta wonder what is going on.

If these sorts of increases are in the pipe line - what sort of inflation are we facing??

Time will tell.

I decided that my backyard shed/garage need replacing with something bigger that didn't leak when it rained. About 6 weeks ago I sent off three requests for quotation on a new colourbond shed via the internet. I got 2 replies with quotes (unfortunately for sheds that bore no resemblance to the one I enquired about). Both had a note attached saying that I should get my order in quick because the cost was about to go up 10%. As I was about to go on leave at that time I decided to wait until I got back to follow it up. On my return I had another message urging me to send a 50% deposit to lock in current prices as a further 14% increase in price was coming by the end of July.

I think I'll just sell some of the junk in the shed to make room and use the cash to buy some lazerlite to replace the leaky tin. The new shed would have cost as much to replace as my brick veneer house!