Since 2020, supply chain disruptions and increased demand following the pandemic made prices of raw materials soar. However, 2023 saw the first signs of a fall in the cost of metals and other materials, with 2024 set to see prices drop even further.

What has caused prices to drop? The decrease in demand has seen the forecasted price deflation come to fruition, whilst the ongoing unsteady economic situation in the UK solidified it. A steadier supply of raw materials should now start to consistently drive prices down.

Paul McFadyen from metals4u, the UK’s biggest online metal supplier, said: “We’ve already seen green shoots in the cost of materials. “The period between June and August 2023 saw an average drop of 1.6% in the cost of raw materials compared to the previous year, and this trend looks likely to continue into 2024. Prior to this drop in June, it had been 21 months, in September 2020, when prices last dropped across the board.”

The decrease in raw material prices aligns with the demand for tradespeople increasing, forecasting a busy 2024 for all the trades. Conversely, Red Sea shipping disruption is leading to longer lead times and higher freight rates as carriers on affected lanes take alternative routes. This is an evolving situation that we will continue to monitor for impact on availability and selling prices.