What factors affect the price of stainless steel?

2022-06-17

What factors affect the price of stainless steel?

Supply and Demand:As with any commodity, supply and demand is a huge factor that determines steel prices. The higher the demand, the lower the supply, the higher the price.

Industry Trends:Price is also influenced by the demand of the various industries steel is used for.

Cost of Materials:Scrap metal and iron ore are two of the main materials used to create steel. If there is a limited amount of these resources available, demand exceeds supply, and the cost of materials will jump up. Pacesetter has a focus on zinc-coated products, and the rising cost of zinc has become an important factor to track. Additionally, tracking energy costs can be an indicator of both market conditions and mill cost structures. It takes a lot of heat to melt steel.

Costs of Shipping:By the same token, materials used to create steel as well as finished goods can be costly to ship, a factor that may help determine price. If shipping overseas, politics could play a role, and the same goes for the cost of labor and fuel. We must also consider the risk and leadtime associated with a given shipping mode. In a volatile steel market, selecting a freight method with a longer transit time can have a huge implication.

Time of Year:Time of year has its effect on many industries, and those that use steel are no different. Holidays, weather, and seasonal highs and lows affect the output of new products, either raising or lowering demand. We’ve also seen how seasonality can impact shipping patterns and transit modes. And with changing demand, of course, comes pricing fluctuations.