DENVER — The increase in steel prices is causing price increases on several product lines, including another increase on Hercules manufactured products, which will increase in price by an average of 15%.
Several factors have led to these steel price increases including:
- Delayed demand from 2020 coupled with restricted material supply.
- Domestic mills late on deliveries causing spot outages in the markets. (Supply chain disruptions)
- US mills are on allocation – restricting material quantities that can be purchased.
- Availability of spot purchases with US mills is non-existent.
- Demand continues to be stronger than expected and mills are not able to keep up. (Demand is outpacing Supply)
- Global steel supply is also experiencing availability issues, lead times for foreign mills are about 4-6 weeks longer than domestic mills.
A summary table of the announced price increase:
|Vendor||% Increase||Date of Increase|
|Hercules Sheet Metal Products||15%||6/1/21|
|Shoemaker- Grilles and Registers||9%||6/1/21|
|Allied Air-Heating & Cooling Equipment||5-7%||6/1/21|
|First Company- Air Handling Units||6%||6/4/21|