Metal Fabrication: Understanding the Factors Influencing the Price of Steel

Steel is an inherently strong material. It has excellent tensile and compressive strength, making the metal ideal for numerous applications such as construction and equipment fabrication. This material is durable and will provide prolonged service in most environmental conditions. In addition, steel is highly machinable. This property makes it suitable for manufacturing complex goods. Unfortunately, the cost of purchasing steel can be considerably high for growing businesses. Therefore, if you are planning on carrying out a large-scale industrial or commercial fabrication project, you should understand the steel sales market. Here are different cost factors that you should monitor before buying steel.

Demand and Supply 

The price of steel will be highly influenced by the law of supply and demand. Therefore, you should study the market before making a huge purchase of the material for your fabrication project. As you might expect, the price of steel will go up with an increase in the demand of the material. You should also note that the steel dealers will consider the forecasted demand and supply. If more businesses are expected to purchase the material in the foreseeable future, the prices will rise. Ideally, you should look at the trends in the industries which rely heavily on steel such as auto, construction and packaging before making your order.

Specific Grades

Your chosen material grade will determine the total costs of purchasing steel. Therefore, you should evaluate the options which are suitable for your products before proceeding with your project. In general, the price of the different grades of steel is determined by the alloying elements added to the carbon steel and the manufacturing methods. For example, steel materials with an added material such as chromium will be expensive due to the high-quality alloyant. Also, galvanised metal prices will be influenced by the price of zinc and the coating process. If you would like to minimise your project expenses, you should choose steel grades without expensive additives.

Shipping Costs

Finally, the price of steel will be influenced by the cost of shipping the goods. The steel production companies have to transport iron ore and scrap metal as well as the finished steel rolls or plates. If the market is volatile or the fuel prices are up, these businesses will need to offset their losses by increasing the price of steel. Also, your business shipping costs after making your order will have an impact on the total project expenses. Therefore, you should compare the different transportation options for ideal savings