Structural steel price jumps another £50 a tonne

Aaron Morby 2 years ago
Share

Constructional steelwork contractors have been hit with another major price hike from British Steel to start the year.

In letters to contractors, British Steel blamed sustained high steel-making costs for the £50 a tonne increase on steel sections for all new orders with immediate effect.

The latest rise follows a volatile 2021 that saw seven price hikes lifting the price of steel by around £340 a tonne.

It comes as the Construction Leadership Council’s Product Availability working group reported signs of easing in supply bottlenecks around general construction material delivery times but warned that high energy prices would impact on the year ahead.

It said rising energy costs and price inflation continue to cause concern, with the latest forecasts anticipating 2022 price inflation from 7-10+%, with multiple increases expected for some products.

The working group predicted continuing high level of demand means that a shortfall in the domestic production of bricks, which is already at full capacity, will continue throughout 2022 until three new UK brick making plants come on stream in 2023 and 2024, boosting UK annual capacity by about 150m bricks per year.

Imports largely from the EU and potentially beyond will be required to meet current demand.

One brick supplier told the Enquirer: “The UK’s three largest manufacturers have all customers on allocation and are still on extensive lead in periods

“Importers are also massively overwhelmed so sky high prices and availability problems look set to be in place for some time yet.”

While the issues previously affecting timber and cement availability have eased, they have not been fully resolved, and longer lead times may return as the volume of demand increases later in the year.

Demand for roof tiles remains high with lead times averaging 24 weeks and rising to 41 weeks for some profiles. Additionally, clay tiles are subject to price increases due to rising energy costs.

Furthermore delays and volatile prices for global shipping look set to continue at least until autumn 2022.

 

 

Latest news

London £3bn housing framework out to tender

SMEs allocated slots on London Construction Programme housing framework refresh
3 hours ago

BAM wins first major RAAC school rebuild

Contractor seals £46m deal for St Leonards school in Durham
3 hours ago

Failed strip out specialist owes £1.5m to supply chain

More than 100 subcontractors and suppliers left with unpaid bills by Type Ten Limited
4 hours ago

Councils to turn screw on building owners over fire safety upgrades

Government tells councils to step up legal action against rogue building owners
4 hours ago

Green light for £300m Fenland energy from waste scheme

Wisbech incinerator will generate 50MW from half a million tonnes of waste
17 hours ago

Multiplex starts on 50-storey Thames tower

Developer green lights construction of latest phase of £3bn Bankside Yards scheme
23 hours ago

McLaren lodges fresh Reading Broad Street Mall plan

Town centre scheme will deliver 600 homes in four towers
1 day ago

Beard bags £24.5m Bristol office revamp

Construction to start in April
3 hours ago

SMEs star in £3.2bn social housing upkeep deal

Around 85% of Efficiency North's framework winners are local firms
1 day ago

Scottish NHS new building projects delayed for two years

Spending clampdown hits over a dozen planned projects
1 day ago

Balfour M25 workers hold strike ballot

Motorway maintenance crews unhappy with 3.4% pay rise offer
1 day ago

Rainsford Contracts acquires M&E specialist

Expanded contractor will have turnover of £45m
1 day ago

Statom expands with launch of Northern HQ

RC frames specialist now targeting jobs in Scotland and north of England
2 days ago

High Court dismisses Stonehenge tunnel challenge

Judge quashes legal challenge against Government consent for £1.7bn job
2 days ago

£1.5bn Teesside carbon capture scheme consented

Final investment decision expected this year for construction start
2 days ago

First viaduct steel section installed at HS2’s complex junction job

Victor Buyck Steel Construction install first 300t viaduct section
2 days ago

Sister scaffold firms file administration notices

BCM Scaffolding Services and Scaffteq West employ 100 people between them
2 days ago

McLaughlin & Harvey suffers £8.6m loss

Cost inflation and Scottish landfill tax legislation hit Antrim-based group
2 days ago

Regulator opens probe into National Highways delivery

ORR concerned about 'dip in performance' on capital projects
2 days ago

Sir Robert McAlpine chief Paul Hamer exits

Hamer replaced as CEO by former Lendlease Europe boss Neil Martin
5 days ago

Unite Students to build £250m Newcastle scheme

Work to start this summer on revamp of Castle Leazes site
2 days ago

Britcon poaches Tilbury Douglas business development chief

Don Stewart joins Britcon board as strategic director
2 days ago

Building control system on verge of collapse

Calls to delay new registration scheme
5 days ago

Go-ahead for UK’s largest mass timber structure neighbourhood

Visionary 685-home sustainable village will be built in Lewes, East Sussex
5 days ago

£90m Manchester zig-zag library approved

Work to start this summer on iconic city centre building
5 days ago

Mace clear to start £34m weather-watching HQ job

Planning granted for European Centre for Medium-Range Weather Forecasts
5 days ago

Ford Dagenham site revamp to hit nearly 4,000 homes

Latest phases approved for £1bn Beam Park redevelopment
5 days ago

Sisk names new data centres regional director

John Hennessey appointed to lead expansion
6 days ago

Balfour starts £171m Sussex Uni student DBFO job

West Slope Residences will provide 1,900 bedrooms
6 days ago

Director and site manager sentenced after labourer crushed

Worker killed during demolition on renovation scheme
6 days ago

Contractor services