Rising Steel Prices Force Construction Prices Higher
Announcement posted by Action Sheds Australia 07 Jul 2014
Provider of sheds, barns, stables and garages in Perth reveals why sheds are still a great bargain.
Perth, WA, 7 July 2014 - In April, the CEO of BlueScope Steel warned that his firm would have to raise steel prices due to skyrocketing iron ore and coking coal costs. At the time, coking coal was projected to double in price while iron ore was projected for a 65% rise. One would think that steel prices would rise by as much as 50-75%, but so far BlueScope has been able to keep their rise in the 5% range.
This, of course, has forced the construction industry to raise the prices of steel products. In the case of firms like Action Sheds Australia, though, who use BlueScope Steel, their price raises have been in the 5% range. BlueScope is the largest steel producer in Australia and usually the trendsetter in the industry. However, the number two steel producer, OneSteel, had already raised their prices by 10% during the previous year.
Most economists see the rises as “inflationary,” meaning that prices probably won’t ever return to previous levels.
Whose Prices will Rise the Fastest?
Max Italiano, owner of Action Sheds Australia, feels that the recent turn of events makes his products a bigger bargain than ever. According to Mr Italiano, “We have always been able to build industrial sheds for a fraction of the cost of bricks and mortar. We don’t see that changing over a rise in steel prices. If anything, the larger amounts of steel that help support bricks and mortar buildings will increase the cost of their products more than ours.”
It is entirely possible that BlueScope, as the largest steel producer in Australia, will be able to sustain increased costs easier than the smaller producers and keep their prices lower than everyone else’s. If so, this will provide a competitive advantage to firms such as Action Sheds Australia who exclusively use steel supplied by BlueScope.
Estimates of the future price of iron ore have been all over the map. This has caused some economists to moderate their opinions on just how far the price of iron ore will rise, or if it will eventually return to lower levels. Most agree that the cost of transport is also rising and that inflation is always on an upward trend.
But the bottom line is that nobody really knows what is going to happen to iron ore prices or, consequently, steel prices in the coming year.
According to Mr Italiano, “Nobody really knows what is going to happen with steel prices. We are glad that BlueScope is keeping their price rises to a minimum. We think it bodes well for firms like us who use their steel exclusively. At Action Sheds Australia, we will have to pass the increase along to our customers, but we are still going to keep prices as low as we can to stay competitive.”
Mr Italiano concluded, “We know that we are still providing the best value in the industry.”
Action Sheds Australia provides barns, stables, sheds and garages from their Perth office. They are ShedSafe certified and their customer service is extremely professional and knowledgeable. For an estimate or to learn more, call 1300 778 628 or visit their website: http://www.actionsheds.com.au/.
This, of course, has forced the construction industry to raise the prices of steel products. In the case of firms like Action Sheds Australia, though, who use BlueScope Steel, their price raises have been in the 5% range. BlueScope is the largest steel producer in Australia and usually the trendsetter in the industry. However, the number two steel producer, OneSteel, had already raised their prices by 10% during the previous year.
Most economists see the rises as “inflationary,” meaning that prices probably won’t ever return to previous levels.
Whose Prices will Rise the Fastest?
Max Italiano, owner of Action Sheds Australia, feels that the recent turn of events makes his products a bigger bargain than ever. According to Mr Italiano, “We have always been able to build industrial sheds for a fraction of the cost of bricks and mortar. We don’t see that changing over a rise in steel prices. If anything, the larger amounts of steel that help support bricks and mortar buildings will increase the cost of their products more than ours.”
It is entirely possible that BlueScope, as the largest steel producer in Australia, will be able to sustain increased costs easier than the smaller producers and keep their prices lower than everyone else’s. If so, this will provide a competitive advantage to firms such as Action Sheds Australia who exclusively use steel supplied by BlueScope.
Estimates of the future price of iron ore have been all over the map. This has caused some economists to moderate their opinions on just how far the price of iron ore will rise, or if it will eventually return to lower levels. Most agree that the cost of transport is also rising and that inflation is always on an upward trend.
But the bottom line is that nobody really knows what is going to happen to iron ore prices or, consequently, steel prices in the coming year.
According to Mr Italiano, “Nobody really knows what is going to happen with steel prices. We are glad that BlueScope is keeping their price rises to a minimum. We think it bodes well for firms like us who use their steel exclusively. At Action Sheds Australia, we will have to pass the increase along to our customers, but we are still going to keep prices as low as we can to stay competitive.”
Mr Italiano concluded, “We know that we are still providing the best value in the industry.”
Action Sheds Australia provides barns, stables, sheds and garages from their Perth office. They are ShedSafe certified and their customer service is extremely professional and knowledgeable. For an estimate or to learn more, call 1300 778 628 or visit their website: http://www.actionsheds.com.au/.