The supply chain has been a roller coaster for the last couple of years, and 2023 looks like it won’t be an exception. Between inflation, global conflicts, and more world events, the market is volatile and it’s not sparing materials like steel.
Let’s take a dive into how the market will keep affecting steel pricing and lead times, plus what that might mean for your name plates, data plates, and more.
Experts aren’t seeing an end to supply chain holdups in 2023. In their October press release, the World Steel Organization mentioned that the problems have eased, but they predict that “bottlenecks” around the world will continue to disrupt shipping. The good news is that the supply chains issues are beginning to subside overall, so lead times are now only a little longer than average. At least in the U.S.
For American companies and consumers, the World Steel Organization predicts that the demand for steel isn’t likely to contract, considering the demand from the automotive industry is expected to rise. This is thanks to demand building up through 2021 and 2022. Overall, the WSO expects manufacturing to “cool” as people’s spending habits change in the wake of inflation and a possible recession.
Speaking of inflation, that most likely will affect the prices of steel. In the U.S., the Fed is raising interest rates to combat inflation and cool price hikes. The higher demand of steel from the automotive industry on top of the cost of inflation could possibly hike the price of steel.
According to Fastmarkets, that means that the demand for steel makes it a great stock market investment in 2023. That’s due to inflation, existing demand, and government legislation that’s predicted to increase steel demand further. And while that means investing in steel could be a great bet for your stock portfolio, it could also mean increased price for the material.
On the other hand, Fastmarkets shows the price of steel stock declining, then leveling off in the last quarter of 2022. Whether it will actually bounce back up in 2023 remains to be seen.
What does this mean for your name plate?
At DNPE, we keep apprised of changes in the market and always keep you updated on prices and lead times. If you want to go by the market in 2023 and need to order stainless steel, we suggest ordering your name plates sooner rather than later.
Regardless of when you buy them, steel is an excellent investment for a lot of name plates, data plates, and more. This is especially true if you intend to use your plate outside or in corrosive environments. Stainless steel is a great material that can withstand extreme temperature changes, water damage, and more. It’s a way to invest in your name plate, ensuring it will last as long as you need it.