LSiescttinogr sFocus: Steel stockholders
Supplying the sector
10 NSC
Mar 20
From an extensive national network
of depots, steel stockholders serve
all parts of the UK and Ireland, and
construction is their biggest client.
As well as heavy structural sections they
supply plate, tubular sections, light sections,
cladding materials, flats and angles – all the
elements needed to create a steel building.
In this article NSC looks at the steel
stockholding sector; the services and
support they provide to the structural steel
supply chain.
Over 65% of structural steel in UK
construction projects is supplied via a steel
stockholder. One of the major benefits to
steelwork contractors from the UK’s large
stockholding sector is their ability to ‘break
bulk’. Stockholders buy in large volumes
and stock a wide range of steel so they can
respond to the demands of customers for
the hundreds of steel sections sizes and
grades available.
This means steelwork contractors don’t
have to tie up working capital holding
stocks of steel on the off chance that it may
be demanded soon, or incur the cost of
storing the steel itself. Stockholders can do
this much more economically as, having a
lot of steelwork contractors to supply, they
are turning their stock over much more
quickly.
Steelmakers produce steel in accordance
with pre-planned rolling cycles. While
these rolling schedules can vary and
are influenced by product and market
requirements, they need to be planned
in advance. When buying directly from a
steelmaker, orders must be for minimum
quantities of steel in terms of weight or
bundles (number of pieces) rather than
matching the specific and immediate
requirements of a project.
Steel stockholding and Brexit
98% of the UK’s structural steelwork is
fabricated in the UK. The key input to this
process is of course steel, and the risk to
the availability and delivery of hot rolled
structural sections is low. This is largely due
to a joined-up supply chain that includes a
UK producer, European producers, and a
well-established network of distributors and
stockholders who keep sufficient levels of
stock to support just-in-time deliveries to
steelwork contractors.
The effect Brexit could have on the
industry is clearly unknown at this stage,
it is likely for steel stockholders that
administrative tasks may increase and
potentially the costs to import material too.
Additionally, lead time could be slightly
Steel stockholders play a vital part in the steel construction
supply chain, ensuring the market is supplied with what it needs
when it is needed.
/Construction
/Steel_construction_products#Flat_products_-_plates
/Steel_construction_products#Structural_hollow_sections
/Steel_construction_products#.27Light_steel.27_sections
/Steel_construction_products#Cladding_and_Roofing
/Steel_section_sizes
/Steel_construction_products#Standard_open_sections