In a trading update, the firm predicted that steel prices would continue to rise in the first half of the year, but said it had taken steps to ensure the impact would be miminal.
Yesterday Corus unveiled a further rise in the price of delivered structural steel. From 30 May all steel sections will rise by £80 a tonne.
Against this background Severfield said that demand and work pricing levels in the UK and Ireland were poor, predicting 2010 would be the “trough year for the industry”.
The UK’s largest steelwork contractor said it remained highly competitive and had managed to improved market share despite the harsh conditions.
Its present orderbook stands at £241m, up from £219m in March, helped by the award of structural steelwork for the new Terminal 2 building at Heathrow Airport.
The steelwork will be delivered to site between summer 2010 and spring 2011.
Severfield’s new factory in India is a few months away from first production and is expected to be delivered on budget.
A second joint venture in the country to design, manufacture and install complementary metal deck flooring, will also commence operations in the summer of 2010 as scheduled.