Wasatch Steel 243 W 3300 S, Salt Lake City UT 84115 (801) 486-4463
The selling price of a product is relatively different from its costs. The initial value of steel out of the manufacturing factory is the selling price. This changes, though, once dealers sell the products as other aspects are in consideration. These include transport and storage expenses, along with the profit. Mapping out the pricing of steel products in 2015 is quite complicated. Mainly, economists say that the law of supply and demand states that the more people require a certain product, the higher its base price becomes. Dwelling on the Demand Statistics Looking at the statistics, emerging markets and industrialized countries demanded a total of 1,430 million tons of steel products in 2012. This rose to as much as 1,531 million tons in 2013, and slightly increased more to 1,562 million tons in 2014. With this demand increase trend at hand, analysts say that it is relatively safe to say that an increase in price in 2015 is possible. As more businesses take form, more people create and develop establishments and products using steel as a base material. Considering the Demand Consistency Even though more companies emerge on the market, steel product manufacturers say that this does not necessarily mean a constant increase in demand. A study shows that steel products, given their innate durability and resistance to different harsh elements, tend to last about 25 years, depending on exposure. This clearly states that consumers who demand steel products this year may not require again for the following year or a few more years after due to product satisfaction. Listing Some Essential Factors
Steel products come in different shapes, sizes, and quality to suit specific needs or application for some industries. This widely affects the total pricing of the product, given that some forms of steel are more in demand than others. Thus, the rate for these steel products will quite move in different directions. To sum it up, predicting the selling price of steel products in 2015 cannot be determined without thorough study and analysis of different factors. But with the general numbers at hand and depending on the current trend of demand, many analysts say steel product prices may more or less increase.
Sources: http://www.wasatchsteel.com/steel/tubing-rectangular.html http://www.statista.com/statistics/276253/demand-for-steel-products-in-industrialand-emerging-markets/ http://www.wsj.com/articles/from-drug-prices-to-drones-whats-ahead-for-businessin-2015-1420414679