Cost Of Steel Per Kg

Steel is such a volatile commodity that a 10% change in price within a couple of days isn’t unusual. This high level of uncertainty makes it difficult for steel buyers to plan their businesses.

How much does steel typically cost?

Steel prices are generally influenced by several factors, such as demand, production capacity, and international relations, as Australia is also dependent on imports. Oftentimes, all it takes is for a single domino to fall for the price to change dramatically.

So, when the chaos of 2020 came, the price of steel skyrocketed. The pandemic caused a slowdown in construction activities, halted imports, and decreased production. As a consequence, the cost of steel has soared.

It peaked in April to May of 2022 to almost AUD$1,500 per tonne at the Global Markets. Fortunately, economic recovery is underway, and steel prices have begun to stabilise.

These days, steel cost is around a reasonable AUD$1,000 per tonne or AUD$0.10 per kg. It’s important to acknowledge that it’s still not at the same pre-pandemic levels, but it’s definitely a welcome development.

How to get the best steel price per kg for your budget?

• Research steel suppliers and compare prices: Look for reputable steel suppliers in Australia and compare their prices per kilogram of steel. Different suppliers may offer varying prices, so it’s important to do thorough research to find the best deal.
• Consider procuring steel from recyclers: A lot of scrap metal recyclers can offer steel at lower prices if you purchase your steel from them directly. They can also provide you with the best quality grade of steel as they process scrap metal on a regular basis.
• Negotiate bulk purchases: If a builder needs a significant amount of steel for multiple projects or ongoing construction, they can negotiate bulk purchase agreements with suppliers. Buying in large quantities can often result in discounted prices.
• Take advantage of off-season discounts: The prices of steel can be influenced by seasonal fluctuations and market demand. Builders can inquire with suppliers about any off-season discounts or special offers to get a better price.

Types of steel that can be recycled

About 98% of all steel can be recycled. In order to be recycled, steel needs to be separated from other materials and stripped of paint and coatings. There are several different types of steel that can be recycled, including:

In-house Scrap: Even mills can have steel waste from rejected trimmings, spent abrasives and other by-products. These materials can be recycled within the mill, reducing costs and saving energy.

Industrial Scrap: Industrial scrap includes materials like old machinery and equipment used for manufacturing. It also includes industrial by-products such as slag, which is a waste product made during steel production.

Obsolete Scrap: Recycling plants also often get steel from obsolete machinery, such as old cars, appliances and construction equipment. These materials are often shipped to recycling plants in the form of freestanding frames or scrap metal.

Why work with Melsteel?

Melsteel is a one-stop solutions provider for steel building materials such as beams, columns, angles, and plenty of others. They also offer custom fabrication services for customers looking for a more bespoke solution.

Ordering from their website is an absolute breeze, thanks to the incredibly user-friendly interface they offer. Additionally, they go above and beyond by providing top-notch delivery and installation services for added convenience.

Plus, their prices are competitive and up-to-date for the best deals.