The steel industry has been rapidly changing daily, and everyone has noticed a massive change in the past ten years. There are many reasons why the price of steel pipes is rising worldwide. The price has been rising over different products and all across different geographies. One such reason is the rise in the price of iron ore, the main material used to make steel. The steel pipe suppliers have been complaining about the price hike of iron to the government and that many raw materials are unavailable most time. Because of all these problems, many countries’ steel outputs have suffered miserably. The following blog discusses all the reasons why it is like that.
Percentage
After lots of research, it was seen that the domestic steel pipe suppliers had seen a rise of 10% in the price margin. Most domestic steel mills had announced this increase, and a new price sheet list was released, which is now in effect. The imported steel pipes had also seen a 10% increase in price. Moreover, you can see an increase in competition for raw materials in the OCTG sector. As the demand for materials like nickel, iron ore, and zinc keeps increasing, the global supply is decreasing daily.
The Main Thing is Happening with Steel
The steel makers of Europe have been cutting back operations, stating that the prices are high. The gas imports that had been happening from Russia have also seen some restrictions that, in turn, power the electrical furnace of the steel manufacturing unit. As the cost is increasing, the steel pipe suppliers are also not getting pipes from the production houses, which is starting a ripple effect all over the industry. It is hoped that China might pick up the steel pipe supply, but it will take time to catch up.
Iron Ore Shortage
As the increase for steel has increased a lot in the past year, it has heavily impacted iron ore. The price for iron ore has increased by 140% and is now at a 10-year high range. As everyone knows, China is one of the lead importers of iron ore, 90% of the shipment were seen to be from there. But the manufacturers could not get as much iron ore as the demand, which resulted in a shortage of the raw material.
The China Factor
China had decided to cut its steel output to reduce carbon emissions, which immediately increased the price of steel in China. Then they decided to reduce steel export and focus more on domestic demand. This contributed to the rise in global prices.
Choose the Right Suppliers
As you see, the steel pipes have seen a huge price hike, so if you want pipe supplied for any project, check out Bigfoot Pipe & Piling, as they have the most competitive prices for their pipes.
