Braced for the Impact of Market Volatility
Due to recent volatility in the steel industry, our factories are passing through to us a "steel surcharge" on new yard ramps. We, in turn, will pass through this charge to our customers without markup.
The "sudden" rise in steel pricing has happened for a number of reasons, including the ongoing international tariff battles, along with China's 55% of the steel manufacturing market and its post-pandemic decision to reduce exports.
Yes, we're in a supply-and-demand adjustment period.
(And not just steel. Try buying a gaming computer right now.)
As S&P Global reports, "What we are witnessing is the continuation of a demand-driven trend that began exactly a year ago, when China saw a fast rebound in economic activity following its rapid exit from lockdown, which was immediately matched by a sudden spike in steel prices."
As with prior spikes in steel pricing, we think⏤and hope⏤ this is a temporary condition. Economists are predicting steel demand to significantly outpace supply through the end of 2021.
Fortunately for our customers, The Yard Ramp Guy's status as the #1 dealer for each of the three factories we represent means the factor used to calculate our steel surcharge is considerably more favorable than that of our competitors.
We will continue to sell yard ramps at pricing lower than our competitors and lower than our factories will sell directly to end users.
Thank you for your understanding as we all navigate these continued strange times.