Whether you’re considering building a new home or business or are a contractor working with steel products, you’ll be impacted by steel prices in 2023. Steel prices were at historic highs in 2021 and the first half of 2022. But that is about to change.
If you’ve been steering clear of steel because of high prices but would like to know if steel prices are going down in 2023, you’ve come to the right place. We will provide a forecast and examine how steel prices affect distributors, contractors, and homeowners.
How Do Steel Prices Affect Different People?
Steel prices had a profound impact on people who wanted to build a home in 2021 and 2022. Few people think about all the different components of a house that use steel until they have to pay for them. Siding, roofing, ductwork, your electrical system, and many other components of your home include steel in their makeup. Therefore, building or remodeling a home in 2022 was incredibly expensive due to the price of steel supply, especially when inflation was factored in.
The high prices in 2021 and 2022 were not easy on steel distributors. Because of the high price of steel, homeowners and contractors started looking for more affordable alternatives.
- Manufacturers and Recyclers
Metal manufacturers and recyclers were the only ones who benefited from the high prices of steel. People who collected scrap metal were getting all-time high prices from recycling centers. Additionally, those creating and manufacturing metal were fetching historically high prices on their products.
Are Steel Prices Expected to Go Up or Down in 2023?
Due to several factors, steel and metal prices are expected to go down in 2023. In fact, since May of 2022, the US Midwest Domestic Hot-Rolled Coil Steel futures contract was down over 53% from where it was at the start of 2022. Many other companies and markets have followed suit and have also experienced plummeting steel prices in the latter part of 2022.
Why are Steel Prices Going Down?
You might be wondering why steel prices have been going down and are expected to continue in that direction for some time. The main reason is that there isn’t as much demand as there was in 2020 and 2021. With industrial production slowing down, so does the need for steel products. Additionally, steelmakers overshot demand for steel and are now left with an oversupply.
Steel Prices Could Go Up Later in 2023
While steel prices are expected to go down further at the start of 2023, they could experience a rebound later in the year. According to the Steel Metal Update, steel and metal prices will soon hit rock bottom, which means that up is the only direction left to go.
It’s unclear when exactly steel prices will start to rebound, but experts believe it will be toward the end of 2023.
Who to Contact for the Best Steel Prices in Texas and New Mexico
If you want the best steel prices in Texas and New Mexico, Chaparral Steel can help. We always have a ready supply of structural, stainless, and galvanized steel for all your building needs. Contact us online or call (575) 824-7796 to learn more.