The firm saw prices edge up last year to £348 per thousand from £343 per thousand in 2012.

Most of that rise was concentrated in the last couple of months of the year and Michelmersh has not fixed forward prices for 2014 due to anticipated increases.

Chief Executive Martin Warner said: “In the last two months of 2013 we started to benefit from better selling prices as new work at revised prices were despatched and price increases implemented at the beginning of this year have held.

“Against industry practice for many years, we have not fixed prices forwards in 2014 and believe we are in a position to continue to push margin.

“The industry has entered a new phase as national stock levels have reduced.

“In spite of the low demand in the past five years, sales this year have exceeded production.  This should release downward price pressure and allow the industry to achieve realistic margins against increased energy costs.”

Michelmersh made the bullish predictions as it unveiled results for the year to December 31 2013 showing turnover up to £25.9m from £23m last time with operating profit static at £1.4m.

Warner added: “With pricing and demand improving, increased production at our most efficient plant, and the other initiatives which we are working on, we believe that we will be able to more than hold our own in the future and the fruits of many years of hard work will start to become apparent.”