Curious about 2023 steel prices? Wondering about Australian steel prices? Are they still high? Are they coming down?
The steel price rises over the past two to three years have been well documented.
And, if you have built a farm shed or purchased fencing supplies or a steel water tank during this time, then you have likely experienced these increased steel prices firsthand.
But will steel prices stay this way? Can we expect them to decrease? Will steel return to pre-Covid prices?
Steel prices are always fluctuating as it is a volatile market. Therefore, it can be hard to keep track of the latest changes.
So, in this article, we will explore steel prices in Australia in 2022 and 2023. And what the prices will be influenced by.
We also discuss how changes in steel pricing will impact your farm shed project costs.
Read on to learn all about it.
Steel Prices In 2022
Let’s look back at what steel prices were expected to do in 2022 – and what actually happened.
According to Ibis World, the global price of iron ore and steel was “expected to contract sharply after reaching record highs” due to lower demand.
For example, continued lockdowns in China resulted in a decline in China’s steel consumption.
And monetary policies introduced to reduce inflation such as raising interest rates also weakened demand.
Prices were also expected to decrease as global supply chains recovered from the Covid pandemic.
Similarly, Bluescope also said steel prices would fall after the record year, with prices having reached unsustainable levels.
Bluescope Chief Executive Mark Vassella said the market “hesitancy” or lower demand for steel was “because end customers were wary in a falling price environment.”
Locally, these price decreases were expected to be offset by continued domestic development and infrastructure projects. For example, the Metro Tunnel in Melbourne.
So, what actually happened to steel prices in 2022?
Here’s a quick summary:
- Steel prices peaked in April-May 2022.
- Steel prices began to decrease in October-November 2022 with beam prices declining by 5 – 10%. RHS prices also declined by around 5%.
- In early December there were further price decreases. Beams had a 5% price decrease while RHS prices decreased by 3 – 4%.
Therefore, since peaking in April-May 2022, beam prices have reduced by around 12%. RHS prices have been reduced by around 10%.
Now that you have an idea of the steel prices in 2022, what can you expect in 2023? Will prices stabilise? Or will they continue to decline?
Steel Prices In 2023
Here’s an overview of what was being predicted for the price of steel in 2023.
- Indications are that prices could drop a further 5% in January-February 2023.
- Some suppliers feel that pricing may creep up slightly around April-May 2023 (but they are not predicting to the same peaks of 2022).
- It is not expected that steel will return to pre-Covid prices. Compared to the peak prices in 2022, pre-Covid prices were about 40% less for beams and about 35% less for RHS!
Please note these were predictions only and were not guaranteed.
What Is Happening To Steel Prices In 2023?
Here’s what we know:
- Steel prices will increase between 3% and 7%.
- The price rise will come into effect in early June.
- It is a general price increase across all steel products.
- The price rise will vary by steel product category.
- The price rise is due to continuing inflationary pressures and raw input cost increases.
Keep reading to learn about the factors that influence steel prices and how changes in steel prices will impact the price of your shed project.
Factors Influencing Steel Prices
As we discuss in our article from earlier this year – Why Are Steel Prices So High? – there are a number of global and local factors that influence the price of steel.
These include global events such as the Covid pandemic causing supply constraints and government spending on infrastructure increasing demand.
This makes for a volatile market. And because Australia is a net importer of steel, we are subjected to these price fluctuations.
The video below on steel price rises also discusses the volatility of steel prices and covers many of the factors that influence the price of steel.
What You Can Expect On Your Shed Project?
As outlined in the paragraphs above, the price of steel peaked and began to decrease. .
This trend was expected to continue in 2023.
However, factors like government-funded infrastructure projects are expected to prevent prices from falling to pre-Covid levels.
And inflationary pressure and mill supplier price increases have caused elevated prices which will come into effect in early June 2023.
So, what does this mean for your shed project?
Steel is obviously an essential material for your shed build, so any steel price increases, or decreases will impact the price of your shed.
Our quoting system is always updated to reflect the current steel prices. And our shed quotes are valid for 30 days.
This has allowed our customers to take advantage of the lower steel prices from October 2022 onwards. This also means that if you have a current shed quote you will be able to avoid the impending price rises.
If The Price Of Steel Increases, Will I Be Charged More?
As we mentioned above, Action Steel shed quotes are valid for 30 days.
And if you sign up for your shed within this period, the amount on the quote is the amount that you will be invoiced.
The exception to this is if the erector hits rock and additional footing concrete is required. Or if you make any variations to your project after signing up.
For example, you decide to include an extra bay. In this case, you will be requoted and invoiced for the adjusted project.
So, if you are building a shed with Action Steel and the price of steel goes up during this time, you will not be charged more.
Instead, your signed quote locks in the steel prices for your project.
Unfortunately, this is not the case with every farm shed manufacturer. This is why it is a good idea to ask your shed builder, whether you will be charged more if steel prices increase during your project.
Learn more about the questions you should be asking before signing up with a shed builder in this article – 10 Questions To Ask Your Farm Shed Builder
So that’s a wrap on steel prices in 2022, expected and actual prices in 2023 and how it will impact the price of your shed! We hope you found this article useful!
Here are some other articles that might be relevant to you:
- How To Save Money On A Farm Shed Project
- 5 Hidden Costs Of Building A Farm Shed
- Updating Your Farm Shed Insurance