Monday, September 19, 2011

Steel Price Rise

Steel Price Rise due in 3 to 7 weeks.

This information is from another website here -

Just trying now to obtain a copy of the BlueScope Distribution Notification - apparently put out on the 12th September 2011 - Why has this been kept quiet?

Seems that very few in the industry are aware of this - especially the end users (see comments on the above website) - most of the rollformers would have received this and would be notifying customers of an impending price rise shortly - but this release has beaten everyone. Maybe  BlueScope has an unhappy employee on the redundancy list.

Watch out for the follow up by One Steel - or maybe not - they could grab a big chunk of the market if they don't play the normal follow me game! Say hello to more imports.


  1. I have heard nothing off this but this doesnt mean it isnt going to happen but what i can be sure off is that the price rise won't stick. I've also had it on good authority that the tonne price on purlins was to come down at least until december so im suprised to read this. Bluescope are dying of a slow death if things like this are true, the big players already have the knives out for them

  2. Yes - It's true - just got a photocopy of the BlueScope Notification - between $60 and $120 per tonne - PLUS additional surcharges??

    BlueScope always will have specials on certain stock - I don't think much purlin feed has been moved by them in recent months - a lot of the projects in WA and QLD are imported feed from various sources! Would be better for the roofing industry if colorbond and batten feed was reduced. But that won't happen.

    "BlueScope dying a slow death" - they just put another knife in their own back - and all the BlueScope top management are thinking about is "How Do I Spend My Bonus" :)

  3. i cant see how bluescope can justify the rise (if there is to be one). material demand is low, building approval is low colorbond and zincalume are both becoming harder and harder to sell.
    the bluescope boys need to be investigated by the accc - lysaghts pricing is getting lower and lower the other rollformers are pulling back but they keep slashing prices like a clearance centre.
    fielders, stramit, and revo would be feeling cheated - its not a level playing field. BUT i cant see anyone making a move away from colorbond and zincalume anytime soon.

  4. 1. Also AUD $ is high - good time for importing.
    2. BlueScope Steel sells to BlueScope Lysaght - result BlueScope Lysaght beats everyone on price! The BlueScope End of FY11 P&L stated that Lysaght & Distribution were not performing. They would have to be getting better prices???
    3. Unfortunately the biggest lobby group to force an investigation with the ACCC is the ASI & BlueScope Steel (One in the same).
    4. Is it time for all rollformers (including enemies) to form a lobby group (even a buying group)?? The enemy of my enemy is a friend!
    5. BlueScope Lysaght sales are down drastically this first 1/4 already - they will be cutting like mad in the next few months!

  5. Theres no doubt lysaghts have changed their sales model. Id have a guess that they are just trying to sell at the lowest point and happy with the 10% rebate, thus securing more tonnes for big brother. If this price rise goes ahead then zincalume will be the first victim and then purlin feed will all be imported. Colorbond will only stay afloat because of minimum order quantities to import making it not cost effective for any rollformer

  6. Tinman - do you think they are only pricing down and keeping the rebate - or as SILENTWITNESS says - they should be investigated by ACCC because of the price they receive off big brother. The whole BlueScope Steel to BlueScope Distribution to BlueScope Lysaght is only in place to keep the ACCC off their back.

  7. the seperation is a thin veil to cover what i personally believe is anti competitive behaviour. the accc are as useless as tits on a bull they dont have the guts to investigate if they did i would imagine there would be a big web of deception and deceit going on. rev, stramit and fielders are all being strung along in my opinion.
    if your right tinman on the 10% rebate they recieve sounds like they would barely cover production costs. can only hope they make a big blue.

  8. The rebate is another issue - some estimates are more than 15% on the tonnes Lysaght put through - and also Stratco imports are rising steadily - BlueScope may only have itself as a customer left. If Lysaght are living on rebates alone - then the P&L will show this at end of year again - Distribution & Lysaght are becoming the basket cases of BlueScope. And as you said Stramit, Revo & Fielders are not being looked after by BlueScope - time for meetings on price increases.

    One Steel price rise due by Monday from the horses mouth!

  9. im still not convinced about this price rise but i respect that your information has always been around the mark.

    Most rollformers live off the rebates on the core product group....stramit,lysaght,metroll and fielders alike. Revo and stratco not so much as they dont have the same agreements as the others with bluescope hence stratco big on import and revo re-ineventing the wheel to try and get 30% more out of a product you can that is the same elsewhere for a lot less

  10. I have a copy of the "UPCOMING PRICE RISE NOTIFICATION - 12 SEPTEMBER 2011" signed by Dean Mehmet - The General Manager of BlueScope Distribution.
    This is real - but only one point on your comment above - Metroll sign the agreements to obtain the rebate - then do what they like (import) - their business model is very different from the other rollformers.

    Apex & Co are also growing? They are negoiating with BlueScope over the price before most of the others!

  11. yes, and apex business model is different again. Being big on the east coast gives you the power and this is why metroll and stramit can push bluescope around.

  12. i have a feeling that bluescope do the pushing around not the rollformers - its our luxury to sell their products (at least thats the mindset)
    bluescope detract from their own business by bowing down to the importers - what they see as a coil here and there must look good on their figures but in reality its a commodity for them and the imported product is what drives their business they can drop the price on the colorbond to get people hooked then offload their imported zinc coil and purlin.
    my theory is volume = better price or well it should be, revo should never have been able to buy at the same rates as Fielders, just as the bigger rollformers should get a bigger incentive. you cant have a company turning over 5tonne buy at the same rate as a company who turns over 50t thats just poor business.
    roofer even with the onesteel price rise i think they have bluescope worried. (even if the big boys dont use it yet.

  13. hills have released thier annual report. its 110 pages and should be hard reading. but ive already seen that their cash on hand is 1/8th of where it was last year. obviously the market pressure is forcing them to drop rates. with their share price hovering at 1.03 and BSl at 0.65 Hills will be looking at how to turn that around quickly.
    with their sharebuy back still in progress i would imagine they have a plan ? or is it just a trick to try and edge their share price up? time will tell.
    hopefully roofer we can disect the report properly and see whats going on behind closed doors. unless tinman can enlighten us??

  14. I think we've been through hills and where they are at, team poly and orrcon were the thorn in their side off what would have been a decent year. They are diverse enough to pull through, have some decent pipe contracts,national broadband etc.

    roofer, i heard today that the distribution price rise wont effect sheet and coil so roofers should rest easy

  15. SILENTWITNESS: Yes! A big report - like you said the buyback is going a 100kph - WHY? If they are trying to trick the share price up - it's definately NOT working!
    tinman: Good news tinman - but I wonder if the specific surcharges (delivery by area etc) will affect sheet & coil. Also I can't understand why Hills haven't done more with "BlueGen" - a really good product!