Rising steel prices and surging demand
Every quarter, we’re giving you a quick update on major changes and challenges within the packaging industry. If you have any questions or thoughts, please get in touch.
Overall, packaging is in high demand again. We’re experiencing unprecedented lead times on all IBC orders. We’re also seeing price increase notifications from many manufacturers for both IBCs and steel drums. This is due to challenges with supplies of raw steel globally.
Since the start of 2020 steel prices have significantly increased and are forecast to climb further. At the beginning of the pandemic, many economies experienced some level of operational closure, this was followed by a strong recovery during their reopening. These circumstances led to all holding steel stocks becoming depleted. Additionally, there is now a significant lack of supply for the surging demand, this is further fuelling the strong price point.
As a stockist and distributor, we manage rising steel prices by maintaining strong communication with our customers and suppliers. By offering regular updates and insights, we ensure there are no surprises as prices increase. With stock issues, we’re advising and encouraging everyone to plan as far ahead as possible. If you need some support on managing your packaging stock, please get in touch.
We predict it’s going to be another challenging period for the business. But this got me thinking…there will always be a new work challenge or business obstacle to overcome. Yet, nothing can compare to the challenges the NHS workers are facing right now. We must keep soldiering on, focusing on keeping ourselves, friends, family and colleagues safe.
Optimistically looking forward to Spring 2021.