For those planning a new steel building construction project this year, be aware that it may cost you more than it would have a year ago.
In 2021, steel prices increased anywhere from 20-25 percent. As a result, steel building prices are at an all-time high, and the reality is they are not expected to drop soon. The industry is seeing price spikes daily. And those who passed on initial quotes are kicking themselves after receiving updated quotes higher than before.
While not an ideal situation, this is the current state of the market, and you must be aware of why the price of steel has impacted steel building prices. We encourage you to read on to learn more about why you need to make a quick decision on steel building quotes if you are looking to start a Summer or Fall project.
Why Did Steel Building Prices Go Up?
Due to Covid-19s restrictions that were put in place for many production lines, manufacturers were forced to shut down operations. Any time a mill facility is shut down whether planned or unplanned, it has a domino effect. The industry supply is affected and adds pressure to the price of raw materials.
In what nobody could have predicted, a booming economy soon followed. While this sounds like a great thing, it has resulted in an imbalance. As the economy reopens, the demand has surged. Resulting in a supply chain that cannot keep up with the demand. In return, prices skyrocket. We have now come to a full circle on how this impacts the quote prices for steel buildings.
Why Buy A Steel Building Now?
While it seems like the worst is behind us, and 2021 is the year of recovery, there is still the aftermath that is currently being felt. As the economy begins to pick up, the steel industry is still needing to play catchup. What does this mean exactly? It means the demand will continue to grow, and the low inventory will continue to cause the price to increase. Because of this, it is best to buy now to minimize your shipping wait time and get the best possible price.
Low Inventory
The steel industry is run by two major sectors, which are the automobile industry and construction. With steel buildings falling within construction, it’s clear why they are directly impacted by the steel shortage. If you need a steel building soon, it is best to accept a quote now to get the best shipping arrival date. In addition, because there’s low inventory there may be a waitlist.
- Unplanned Shutdowns (steel mills)
- Strong Domestic Demand
- 30 percent of global steelmaking capacity was idled (excluding China)
Continued Demand
Regardless of low inventory, steel buildings are still a prime choice for many industries, and for good reason. However, as a result, the demand has continued to prevail regardless of the low inventory causing even higher prices.
Benefits of Steel Buildings:
- Retain Value
- Low Maintenance
- Energy Saving
- Lower Insurance Rates
Slow Imports
If you’re hoping to get a steel building soon, then finalizing a quote fast is the way to go. When domestic steel production is lacking, the obvious next choice is going to foreign suppliers to offset a shortage. However, the pandemic has thrown this common practice out the window. Due to the pandemic and political disputes, steel imports are currently backed up and slow.
Price Increases
Inventory is low, the demand is surging, and prices are skyrocketing for steel products. The price is increasing, but more importantly, when will it stop? Many wish there was an answer, the truth is the pricing of steel buildings is based on the price fluctuations of steel. Currently, that price is impacted by a large demand for products that are low in inventory. Therefore, the price continues to rise.
Source: Green Building Elements
So when will the price peak? Many speculate 2022. If you require steel building before then, it’s vital to accept current quote prices if you do not wish to pay historical price levels.
Factors Influencing Steel Building Prices
According to Green Building Elements, the following list had a major influence on the price of steel in 2021:
- Global Economy Health
- Forecasted Supply and Demand
- Industry Trends: auto industry, construction, packaging
- Cost of Materials: Scrap metal and iron ore
- Strength of the American Dollar
- Natural Disasters and Pandemics
The price of steel material is constantly changing depending on the list above. Unlike other industries, the steel demand fluctuates and goes through major demand spikes and slumps. Resulting in prices going up and down hourly, daily, or periodically. A prime example of steel material price being influenced is the pandemic. The price of steel is heavily impacted by major world events. According to Allied Buildings, government elections and pandemics are an example of events that can impact the steel industry.
Project Planning with the Cost in Mind
Due to the impacts of Covid-19, the steel industry is expecting a price increase of 8 percent in 2021. When planning your next steel building project, it’s important to consider the current state of the industry and the price rise. This highlights the importance of maximizing your steel value by making a quick yet beneficial quote decision.
Source: Green Building Elements
3 Benefits of Locking in Your Steel Building Quote
1. Best Price
At this time, the quotes you request are likely going to be as good as it gets. Steel building quotes are subject to change depending on the continued demand for steel material impacting the dealer's pricing. To ensure you are getting the best price possible, it is best to make a quick decision on the quote you receive.
2. Faster Shipping
In addition to price increases for steel material, there is also a global shipping container shortage currently going on. This means your order can take longer than normal to be delivered. That being said, it's ideal to buy your steel building now to lock in the price and receive faster shipping.
3. Peace of Mind
Finally, locking in your quote now can provide peace of mind knowing that you are ahead of the curve and getting the best available current price. In addition to receiving your steel building in the shortest time frame possible.
Get a Quote That’s Right for You with 360Connect
It is vital to quickly accept quotes that come your way for steel buildings during these uncertain times. But what about five quotes? At 360Connect, we can match you with up to five suppliers. You select the supplier that matches your needs and price point for free.