Volatility is the new normal
In the last few months we’ve experienced major fluctuations in input costs and availability due to Russia’s invasion of Ukraine, skyrocketing energy prices in Europe, and suppressed production in China due to their zero COVID policy. Domestically, we’ve faced rapid inflation, large interest rate hikes, and record high gas and diesel prices. After more than 2 years of market swings, volatility has become the new normal.
Here’s a look at recent volatility within key input costs:
Prices increased this week after dropping, this is the third consecutive $30 swing.
Declined 20% just in the last month, but still remains at elevated levels.
Remains near decade highs, while the average gasoline price set a new all-time high.
Pricing increased this week after dropping the previous 6 weeks.
With volatility becoming the new normal, it’s important to not over react with market swings. Working with the right partner can help manage the volatility, protecting your business so you can keep building.
This material, information and analyses (the “Content”) may include certain statements, estimates and projections prepared with respect to, among other things, historical data and anticipated performance. Content may reflect various assumptions by Majestic Steel USA, Inc. concerning anticipated results that are inherently subject to significant economic, competitive and other uncertainties and contingencies and have been included for illustrative purposes. Content is provided AS-IS.