Steel price index

A steel price index reflects the current price level of a specific portfolio of steel products. Various institutions publish such indices.

What they all have in common is that they can only reflect the current price level. They do not allow any conclusions to be drawn about future changes.

A steel price index enables prices to be indexed for long-term projects. Over Price escalation clauses Contractual partners can thus protect themselves against rising prices. In the last few months there have been repeated very short-term price changes. The steel price cannot reflect such fluctuations.

Steel price index of the Federal Statistical Office (Germany)

The steel price index of the German Federal Statistical Office is created in a similar form. This also contains detailed information on different product categories. Here you will find a particularly clear representation of the steel price index.

Wholesale price index for iron and steel from Statistics Austria

Statistics Austria determines current wholesale prices every month and uses this to create a wholesale price index for iron and steel. Approximately 1.400 wholesale prices, which are voluntarily provided by around 220 wholesale companies, serve as initial values.

In addition, Statistics Austria also creates one detailed index, in which different types of products such as Sheets, Profile or rebar are listed separately.

The wholesale price index for iron and steel takes place in Austria as part of the Önorm B2111 “Conversion of variable prices for construction services” application. The Önorm B2111 contains detailed information on the calculation of variable prices in construction. To make conversion easier, the Austrian Chamber of Commerce also provides one Conversion tool under https://www.preisumrechnung.at/.

Steel price index of the Federal Statistical Office (Switzerland)

The Swiss Federal Statistical Office also publishes a steel price index in a similar manner.

Other steel price indices

In addition to the indices of the respective national statistical offices, there are also “private” indices for steel prices. These are issued by some steel traders or steel processors and primarily relate to their own product portfolio.

Steel price index from Stahl Kompakt

In the steel price index of Steel Compact Over 100 individual types of steel are evaluated. The prices come from steelworks, evaluations of internal projects, general economic data and expert assessments.

Ambros Schmelzer steel price index

No sources are cited in this index. Prices are shown in €/ton. They suggest that these are average purchase prices for structural steel from German steel traders. Link to the website.

The steel price index from ELF Hallen and Maschinenbau

This index represents the average purchase price of the company's most important types of steel. Link to the website.

Steel price index by Frank Stahl

Frank Stahl points to his Website a publicly accessible index. The database comes from Statistics Austria. Instead of absolute prices, prices are indexed to a reference value. The value 100 represents the annual average for 2020. In addition to the average prices, the values ​​for individual profiles, sheets or different materials are also displayed.

When it comes to indices from steel processors and steel traders, it should be noted that they only represent the situation of your own company. This does not necessarily mean that other companies pay the same prices. There are also regional differences. Some of ours Steel construction suppliers buy steel abroad at significantly lower prices.

Steel price index or stock market prices – which is more meaningful?

Commodity exchanges are a daily source of information for the Steel price development. London Commodity Exchange LME (London Metal Exchange) is the world's most important raw materials exchange industrial metals. The following types of steel are traded on the LME:

• LME Steel Scrap (scrap, multiple countries)
• LME Steel Rebar (reinforcing steel, several countries)
• LME Steel HRC FOB China (China Hot Strip)
• LME Steel HRC N. America Platts (US hot strip)
• LME Steel HRC NW Europe Argus (EU hot strip)

A serious disadvantage of these indices is that they only apply to those product groups with high trading volumes. In this way you form the general trend, but do not react to price changes of other product groups. For example, if there is a shortage of steel beams, the cost increase will not be reflected in the index. It should also be taken into account that hot strip steel is significantly cheaper in large quantities than steel beams or plate goods in the steel trade.

The big advantage of the raw materials exchange is that it Current daily prices in absolute numbers (USD per ton) delivers, while the indices lag behind and only ever provide a reference value. Another aspect is that by trading futures contracts, the future market situation can be interpreted somewhat better. While you can't predict the price of steel in the future, you can at least anticipate volatility and speculation.