Steel Price raise, Semi Trailer too!

Dear all, To DTG Group Trailer clients, agents:

It is a long article, if your English is not good enough, then you can just know:

the steel price raise up day by day in the whole world, Truck Semi Trailer are made by steels, so Semi Trailer price will raise up too.

But our factory has lots of steels stock at this moment (purchased a few month ago), so we still have ability that keep the semi trailer price as normal (but still higher than 2020 middle time).

Also, the stock won’t keep long time, because always big transport /logistics company place order to us these month.

So, if you really need buy trailer now, purchase from us is your best choice, no matter quality, or suitable price.

You should know, Raw materials Steel prices have risen relentlessly since bottoming out last summer and hit new record highs in April 2021. But there are signs the astonishing uptrend in steel would finally be losing steam.

Steel Market Update’s check of the market on March 8-9 showed the benchmark price for hot-rolled steel reaching $1,270/ton ($63.50/cwt), topping the previous high mark set in 2008 by $200/ton.

“That is crazy. I’ll tell you one thing, my clients can’t stay in business at these price levels. We are having a hard time passing on the increases,” one manufacturer in the Africa told DTG.

“Restricted supply with the current demand makes steel pricing anyone’s guess. There was nothing there to stop the madness, although we are reaching a critical cost and affordability point with clients. It could force some semi trailer transport company client out of the game,” commented one service center executive.

Steel Market Update canvassed the market Feb. 8-9, and results revealed the benchmark price for hot-rolled steel at a new record high of $1,180/ton. Prices were up 168% from the August 2020 low of $440 per ton. They also were up 9.3% from $1,080 per ton in mid-January, when the spot price first surpassed the prior record of $1,070/ton ($53.50/cwt) published by SMU in 2008.

For many semi trailer clients, price is 2nd to availability. “With basically no spot tons available from mills, it sounds like it is service centers selling to each other between now & May or June,” commented one respondent DTG Group Trailer questionnaire.

Steel clients surveyed by SMU in February predicted that hot-rolled steel prices will peak around $1,200 per ton and head south beginning in March 2021. But that is just an educated guess. Some market participants have been calling a peak since Q4 2020. They are wrong to date. Is this time be different?

When COVID-19 hit last spring 2020, much of the economy shut down to stop the spread of the Corona virus. Since then, steel-intensive U.S. manufacturing has come roaring back—though steel producers have been judicious about ramping up production again. Today 2021, a year after the pandemic began, steel market price demand continues to outpace supplies. Clients report extreme difficulty acquiring enough steel to meet their customers’ needs. Mill is scrambling to fill contract orders & have few tons available to offer spot buyers. Many service centers & OEMs have ordered foreign material—which was cheaper compared to the sky-high domestic prices, & a considerable volume of imports is due to hit shores in the next few months 2021. Yet various mills have announced maintenance outages on furnaces and other equipment that will offset the imports to some degree and keep supplies tight, at least for the short term.

It pegged the average cold-rolled steel price in mid-March at $1,450 per ton, more than double the low of $635 per ton ($31.75/cwt) last August. The former record high reported by DTG Group Semi Trailer clients for cold-rolled was $1,150 per ton ($57.50 per cwt) in July 2008.Like cold-rolled, galvanized steel also reached a record price early last month of $1,450 per ton ($72.50 per cwt). That’s up from the pandemic-driven low of $630/ton ($31.50/cwt) last July and far exceeds the previous high of $1,020/ton ($51/cwt) in June 2008.

Asked & Answered
DTG Group Semi Trailer continually surveys the market. The following questions were posed to steel clients recently. (Each question is followed by one comment that characterized the prevailing view in March.)

When will you see prices peaking? About 60% see the peak by the end of April & 40% in May or later.

“If the steel mills have any hope of winning ‘Buy American’ loyalty, they should hold prices steady and restart any facility they don’t have producing. Otherwise there will be tremendous manufacturing or OEM pressure on the Biden administration to repeal the Section.”

At what level do u think steel prices will peak? The most common belief last month was around $1,300/ton.

“If you look back at the SMU survey from mid-December, 93% thought we’d peak below $1,000. None of us truly knows—including the glorious analysts.”

So, we suggestion you: order semi trailers now if you really need for your transport business. Time is Money! You might lost more money in future than now.

So please, welcome to drop a message to us about your time plan to purchase semi trailer.

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