Will Steel Prices Increase Again in 2022?

Will Steel Prices Rise Again - Will Steel Prices Increase Again in 2022?

Short answer, yes the longer you wait the more you’ll pay on steel. We uncover how you can lock in a price now and secure your shed for 2022, saving you money and stress.

But first let’s talk about the misconceptions about the factors influencing steel prices.

Don’t fall prey to misconceptions:

The biggest misconception is that if the price of iron drops, then so will steel – this simply isn’t the case. The price of iron ore fell 4.9 per cent to $101.30 USD back in September, sitting well below its previous peak. With this statistic it’s understandable to think steel prices can catch this trend – however, it doesn’t look to be the case.

Inflating steel prices have been a talking point for years, but in the last 12 months it’s turned into a more frequent discussion.

Steel prices rising is no new trend, however looking ahead this inflation appears to be consistent in 2022.

How to get ahead of the spike:

With this imminent rise, there are ways to get ahead of the pack and lock in your material purchases prior to this jump.

Buy now: At Spanlift, locking in your shed investment in 2021 can secure your shed price and avoid the steel price rises coming in next year.

While the rising price of steel will eventually stop increasing rapidly and perhaps plateau, industry experts have warned it is unlikely pricing will ever return to original value. So, no matter what happens in the market, it is fair to say sheds will never be cheaper than right now.

“Price rises aren’t going to slow down, they will continue to rise and it is a real thing but we’re willing to help you navigate these changes,” says Charles Grace, Spanlift Business Development Manager.

Why buy now:

Why wouldn’t you buy a shed sooner rather than later? There are a few reasons to buy now, one following our previous point to save money. The longer you wait the more you’ll pay on steel.

The second relates to timing: it goes without saying that your shed will be completed sooner if you start the project sooner. With solid harvests soon to be in our rear-view mirror along with other projects and forecasted work, getting your farm infrastructure project underway will ensure you are ready for 2022.

Additionally, amid this fluctuating price there are some constants that won’t change, like how receiving a top-tier product and service from the Spanlift team will always be commonplace.

“Many businesses are using the steel prices as a scare tactic to try and force customers into a decision. We’re here to tell you this is absolutely unnecessary. An increase in steel prices doesn’t mean your investment will increase by the same percentage.” says Charles.

He goes on to explain”For example, while there might be an increase of 30% on structural steel products, that doesn’t mean you’ll pay 30% more on the total investment for your shed.”

“There isn’t just the steel component when purchasing a shed; there’s engineering & design, manufacturing, installation, galvanising, admin and staff etc so you’re only paying 30% more on the steel component, the other factors remain relatively similar.”

There is a lot of misinformation and numbers to keep track of when analysing the rise of steel prices. Make keeping track easier, contact our team for a comprehensive and digestible breakdown and how this can affect your shed project.