Steel prices in 2024. Will they go up or down?
Over the past few years, steel prices have been an interesting topic as COVID-19 impacted an already volatile market.
In this article, we provide an overview of steel pricing from 2020 onwards and discuss expectations for steel prices in 2024 and how changes in the market can impact farm shed prices.
The Impact Of The COVID Pandemic On Steel Prices
The onset of the pandemic saw the whole world impacted by uncertainty, unpredictability and restrictions, and the local and global steel markets were no exception.
By mid-2021, steel pricing increases were being implemented by major suppliers every month, with prices reaching levels not seen in over a decade.
This trend continued and by mid-2022, the pricing of some steel materials had increased by more than 50%.
A combination of factors was driving these dramatic price increases.
These factors included production and supply issues such as steel mill closures in China, iron ore shortages, labour force constraints and increased sea freight charges.
In conjunction with these supply issues, there was an increased demand for steel and steel products due to government economic incentives and a shortage of timber.
For an overview of how this situation occurred, check out our article from 2022 – Why Are Steel Prices So High? This article covers the key reasons for the increase in local and global steel prices during the pandemic.
Martin, our Founder and Managing Director, also discusses the factors impacting steel prices in the video below.
2023 Steel Prices
By late 2022 steel prices had begun to plateau and even decrease for some steel products. Prices continued to steady and stabilise in the first half of 2023.
Steel prices continued to decrease throughout 2023 however the decreases were relatively small, and prices didn’t return to pre-COVID levels.
Steel Prices in 2024 – Will They Go Up Or Down?
Now that we have a picture of steel prices up until this point, what can we expect to happen to steel prices in 2024?
At the end of 2023 a neutral outlook was expected for 2024 steel prices with a potential oversupply of steel and continued infrastructure spending excepted to keep the prices in balance
Has this happened? Here is what we know so far.
So far in 2024, there haven’t been any significant steel price increases and although steel price rises have been predicted for the end of the year, our suppliers are currently advising that they don’t foresee any increases within the next couple of months.
However, with the volatility and uncertainty of current world events such as the Israel-Palestine conflict, upcoming US presidential elections and the ongoing Ukraine-Russia conflict, steel prices could change – and change rapidly.
Rest assured we monitor local and global steel prices closely and communicate any price increases in advance to help you avoid them impacting your project costs.
This leads us to our next discussion point, the impact of steel prices on shed prices.
How Will Steel Prices In 2024 Impact My Shed Project?
Steel is an essential material for a shed build, so any steel price increases or decreases will impact the price of sheds.
Our quoting system is always updated to reflect the current steel prices and our shed quotes are valid for 30 days.
This allows our customers to take advantage of any price decreases as soon as they are implemented. This also means that if you have a current shed quote, you will be able to avoid the impending price rises.
If Steel Prices Increase, Will I Be Charged More?
This is a common question.
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, if you decide to change the configuration of your shed from roof-only to fully enclosed, you will be invoiced for the price of the adjusted project.
Farm shed permits may also be an additional cost.
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
We hope this summary of steel prices in 2024 has been helpful and helps you with your project planning and budgeting. Listed below are some additional resources for shed pricing and project planning.
Useful Resources
- Farm Shed Tax Write-Off In 2024
- How To Budget For Your New Farm Shed Build
- Which Farm Shed Cladding Should I Choose?
For more information including articles, brochures and videos, browse the Learning Hub. Or to discuss your farm shed project and learn about current pricing, call us on 1800 687 888.
Disclaimer: Please note the information in this article is general only and not financial advice.
