Structural steel prices to soar by nearly 20%

Aaron Morby 4 years ago
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British Steel is hitting construction with a surprise £80 a tonne hike in the price of structural steel from the start of the year.

Structural sections set to rise from summer low
Structural sections set to rise from summer low

The rise will amount to a 15%-20% jump in the price of structural sections which fell to £430-£450 a tonne during the summer.

British Steel first put the industry on notice in early December for a £30 a tonne New Year rise, blaming raw materials costs and a surge in global steel prices.

But this notice was suddenly withdrawn seven days later.

Now it has come back with a figure that is nearly treble the original planned increase, blaming unprecedented increases in raw materials costs.

One steelwork firm said: “Announcing an increase, then withdrawing it has just created confusion among clients and tier ones about which way prices are actually going.

“Then suddenly we are told to brace for a much bigger jump on all new orders placed in January.”

Another warned: “This is all too sudden and reactive, the industry needs more stable pricing, where suppliers manage spikes in input prices to level them out over the longer term.”

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