Tracking the steel market is hard, we get that. Our purpose is to help you navigate the UK steel prices market and influencing factors in 2024. As we embark upon the new year, now’s a great time to review the global steel price trends since December 2023. Higher costs were anticipated in the steel industry and driven by higher demand. Energy costs, global tension and supply chain disruptions still see steel prices at a high.

 

Q4 2023 in Review

The average price increase stands at £48 since January 2024, with further increases expected in the coming weeks. The past year’s economic fluctuations and geopolitical tensions continue to influence the trajectory of steel prices in the UK for 2024.

The close of 2023 revealed notable transformations within the UK steel market. Raw material costs such as iron ore now trading at 20% higher than the last three months, continued high energy expenditure, and significant capacity reductions exceeding 20 million tonnes within the EU have disrupted output. European mills are presently booked for the next three months, with limited availability for May and June. Asian coil imports from India and Korea match EU prices, despite the operational demands on EU mills.

 

Influencing Factors: Energy Costs, Global Turmoil, and Supply Chain Disruptions

Uncertainty continues in 2024, driven by the mix of higher energy costs and global developments. Sanctions on Russia continue to disrupt the steel supply chain, putting more limits on imports and forcing UK manufacturers to rely more on EU mills.

Adding to the complexity, the Israel-Hamas conflict continues. Ongoing global tensions, seen in events like those in Yemen and attacks on shipping vessels in the Red Sea, create more layers of challenges for steel supply chains around the world, increasing shipping times significantly and skyrocketing shipping costs.

On top of all this, the disruption at Port Talbot—where half of its production line is preparing to temporarily shut down for the installation of electric furnaces—adds another twist to the challenges faced by the industry.

 

Price Forecasts for Q2 2024

The global steel market continues to change, with structural steel and sheet metal prices showing an upward trend in the UK. Mild and stainless steel prices have surged in the last two months, flattening briefly during the holidays, and now stabilising slightly.

Speculations hint at a possible steadiness or even a decline in the coming weeks. The CRU index tells us the latest steel prices slightly decreased, but still sit higher than the previous month. The market’s drops and surges show the need for careful monitoring and strategic reacting to potential shifts in cost.

The latest market trends in the UK show that steel prices appear to be steadying, after the recent increases.

 

Proactive Management: Our Commitment to You

In the face of fluctuating steel prices and supply chain disruptions, ADS remains committed to proactive management. Our approach involves continuous monitoring of market conditions, rigorous supply chain management, and strategic planning to provide you with a seamless experience amid uncertainties.

In the dynamic landscape of metal manufacturing, staying ahead is crucial. Partnering with ADS Laser not only ensures you stay informed but also provides insight into market trends, enabling strategic decision-making for your business.

Our commitment to proactive monitoring empowers you to navigate the complexities of the steel industry seamlessly. Join forces with ADS Laser – where staying ahead is not just a strategy, but a commitment to your success.

 

ADS Laser Cutting is the Premier Metal Laser Cutting, Folding, Fabrication, Finishing and Assembly in the UK. Providing Bespoke to Volume Solutions.

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