We are seeing steel price changes in the last 2 weeks due to the steel import taxes, and expect more increases to follow; we need a final scope with all details to get a firm price, and to eliminate charges from changes after the order is placed. Current pricing changes on steel March 6 about 5-7%, expecting another increase approx. mid April 5-7%, insulation increase Jul 1 approx. 8%.
With increased costs from expected import fees, and new increases from steel suppliers, Wright is advising customers that firm pricing is subject to increases if supplier prices change. Current projects are subject to review when they are released for production. Projects that are revised, delayed or changed by the customer are subject to price changes. Approval jobs must release jobs for production to avoid cost increases.
Taxes on import steel and increase in domestic steel demand from the impact of Section 232 on the steel industry is uncertain, but it is reported that steel prices could rise dramatically like we saw in 2004, 25% or more in the next few months. We expect steel pricing to remain unstable and urge you to keep this in mind when pricing future business. Please call to discuss your current project and the status of the pricing.