Let’s start with the question; why are steel prices on the rise? “Owing to production curbs in China’s Tangshan region, steel supply is in shortage in the global market. As a result, steel prices in the export market have increased by 6-8% in April 2021 in comparison to the previous month. Steel prices are seeing a spike even in the domestic market.” – says Free Press Journal.
Tradingeconomics.com reports that China’s steel capital Tangshan instructed most of the mills to cut production by 30%-50% due to efforts to curb COVID-19 spread in the region. As China is the Steel capital of the world of course this has made steel prices soar globally.
I’m sure your asking, “What does this mean for me in my Financial institution?” Many of the hardware used for banks have steel incorporated. So far we have already seen a 7.5% increase in steel costs and more increases are coming. Vaults, ATMs, and ATM Enclosures to name a few would be affected by the rise in steel prices. One other major product is a steel barrier we created to help stop attackers from breaking into ATMs.
Bottom line, if you are looking to invest in your financial institution, maybe move up the date on your purchase date.
We will keep our eyes out for any news on the topic and we are normally posting fresh updates on our social media pages. Don’t forget to follow us for daily updates.
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