2021 In Review & Stainless Steel Pricing

As we move into 2022, we are taking this chance to look back at some of the wild unpredictability we encountered last year, and think about what it means for the future.

2021 In Data: Stainless Steel Prices

Now that 2021 has closed out, we have some data to back this up: the price of 304 grade stainless steel increased approximately 76% over the past year. There is a silver lining here, and it is that most of that price increase was weighted toward the first six months of 2021. We saw price increases slow down toward the later part of the year. But that is still a massive increase in raw material prices, and represents a threat to supply price stability.

Leasing As An Option For Price Stability

With this price instability and potential future increases, one option to stabilize prices is to offload price variability risk to a supplier – in this case, by locking in a long-term leasing agreement, especially for stainless steel IBC totes. By locking in a long-term lease rate, you will be able to guarantee a price for a key supply component (IBCs) and free you to focus on other elements of your business.

Put another way: because leasing equipment is on a fixed-rate basis, you are locking in the rate and price as of today, which hedges against future instability and inflation. Furthermore, if you are able to raise your own prices while retaining lower long-term lease rates, you will increase profits even more.

Outsource and Stabilize Your Supply Chain

At Entrega Industries, we partner with industry leading IBC manufacturers to ensure you have the highest quality totes. Leasing from Entrega is simple, with easy contracts and various term lengths available.

Contact us today to see if IBC tank leasing would be a good fit for your business. We offer flexible options and lease term lengths to meet any budget.

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