Since December 2020, steel prices have increased almost three-fold and look set to remain high through the remainder of this year. Including cold rolled coil, used in lighting column manufacturing. Post new year, we saw increases in the general tube market. But since January, there have been additional costs such as zinc (used in the galvanizing process) plus the well-publicised energy/fuel costs. This coupled with the situation in Ukraine has seen unforeseen pressure put on the general steel market. The future is therefore uncertain for businesses worldwide, including the UK.
As you are aware, throughout 2021 and now 2022 the industry has seen several rises in steel tube prices. To date, we have been able to absorb or work with key customers to advance orders to try to negate such increases. However, with the general midterm forecast and unstable market conditions making it difficult for CU Lighting to place large forward orders (due to the tube mill's conditions of sale/supply), we are unable to hold prices as long as we have in the past without revision. We now ask that you check for current prices at the point of any requirements that you will have until this period of high instability ends. We will be validating quotes for 14 days only, at this moment in time.
If we see a reverse of this market fluidity, we will inform you as soon as possible, but at present, the likelihood is continual increases for the foreseeable future.
I assure you that we continue to have a constant supply of steel and remain industry-leading on our manufacturing lead times (8-10 weeks currently: April-22).
Thank you in advance for your understanding and we look forward to hearing from you in due course.