2023 Steel Pricing Forecast
2023 Steel Pricing Forecast for Industrial Metal Fabrication Customers
Prices in the raw materials market have been turbulent over the last few years, to say the least. Raw steel pricing is no exception, with many industrial metal fabrication customers paying well over double the pre-pandemic rate for steel throughout 2022.
The Price of Raw Steel Throughout the Pandemic: A Timeline
Virtually all prices for raw materials spiked at the onset of the COVID-19 pandemic and remained high with unpredictable fluctuations. This was a direct cause to many of the pervasive supply chain issues seen across the American manufacturing industry.
Throughout the course of 2021 the price of steel remained at all-time highs. Pricing first surpassed the $1,300/ton threshold by June after beginning the year at a price of more than $1,000/ton – roughly double the price of raw steel just a few years prior.
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Raw Steel Prices Potentially Leveling Out for 2022 and 2023
By the time 2022 rolled around, global supply chains were straightening out, and many market analysts predicted a price reset on the horizon. However, February of 2022 saw the start of the war in Ukraine. Combined with the ongoing occasional supply chain shocks due to port shutdowns and COVID quarantines in China, global steel prices climbed up to nearly $1,500/ton in April of 2022, pricing many projects out of the market altogether.
Luckily for metal fabrication service customers around the world, steel sheet prices may bottom out soon. A weaker economy, larger inventory levels and uncertain demand in 2023 leads many in the global market to be cautiously optimistic for the upcoming prospects.
Your Single-Source American Manufacturer – From Fabrication to Assembly to Delivery
At Sawyer, we strive to simplify your supply chain in order to provide the most economical metal fabrication services possible. We leverage our extensive vendor network and industry connections to help your steel fabrication project achieve the speed, consistency, and cost-effectiveness required to meet your production goals.