premnayloon Posted October 22, 2015 Report Share Posted October 22, 2015 Just a question about the steel price, As we know it's been widely publicized that steel prices are low, So just wondering when we can expect the price of wire to come down, Perhaps our hosts could help to understand the costs of their raw materials, it would be nice to see it come down, I'm beginning to get customers questioning the reason for wire not coming down in price. Link to comment Share on other sites More sharing options...
Goaty Posted October 23, 2015 Report Share Posted October 23, 2015 Ive thought of this, I assume the manufacturers absorb profit and loss in either direction and watch it for a while, rather than yo yo their prices as stability is reassuring. Scrap prices are pointless now. Gone from around £130 18 months or so ago to sub £20 per ton!!!!!! I don't want imported foreign low grade rubbish in my tools and sundries either. Link to comment Share on other sites More sharing options...
SimonE Posted October 24, 2015 Report Share Posted October 24, 2015 Better summed up than I could Goaty!.... Thanks for your question Gordon It is an occupational hazard for us that the price of steel as a commodity, is seen as a direct indicator of the prices of finished goods, but you are absolutely right that it depends on the source and quality of the steel. I guess this perception is inevitable working in the agricultural industry as the price of lamb/wheat/milk etc is always at the forefront of farmers minds and has such a big impact on their own incomes. The true picture is that for our products the link to the commodity price of steel is less direct To make the 600 or so wire net products we sell we use a surprisingly diverse range of steel wire specifications from a number of sources here and abroad. Because of our (mainly self imposed) quality standards a number of the cheaper sources of steel wire are not an option for us. Whilst it would be correct to say that the price of some of these specifications has fallen in the past 6 months, the price of some specifications has also risen. We also take a long term view on pricing, because, as Goaty says, it would do you little good, when it came to quoting, if the price of wire was changing on a weekly basis. Certainly the long term trend has been one of stable/falling steel prices and this has meant that we have been able to hold off a general price increase for 4 years. We are conscious however that we have to maintain a balance between giving you the Tornado product quality you expect and remaining competitive in the market. Please be assured that we are constantly reviewing our prices to see that we achieve this. Our aim is to get this right so that you win more business, because your success is our success. If you feel that we are out of step With the market prices I would urge your urge you to speak to Malcolm and his sales team in England and Wales and John and his team in Scotland. Paul Harris Sales & Marketing Director - Tornado Link to comment Share on other sites More sharing options...
premnayloon Posted October 24, 2015 Author Report Share Posted October 24, 2015 Thanks for the reply Paul, and good to have a reply for any queries, I have no doubt that the reasons are valid, I have seen wire prices stay mainly static , in the last 3-4 years, but any drop in price tornado can implement I'm sure would most welcome! Link to comment Share on other sites More sharing options...
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