British Steel Price Increase

As of Friday 5th of March, British Steel have announced a £30/tonne price increase on structural sections with immediate effect. This latest price increase is in addition to the £80/tonne and £50/tonne price increases in January. We have seen a total of £260/tonne increase since last summer due to the rising price of iron ore and scrap metal, and anticipate further increases in the near future.

IMPORTANT: If you have large project work that will be impacted by the price increases speak to your account manager today.

October sales reported within the industry suggest that consumption of Steel has grown to pre-pandemic levels. Since the start of the first lockdown, we ourselves have been seeing month on month increases. With disruptions at many UK ports, and the supply chain bouncing back from summer lockdowns, the market has seen a shortage on particular sizes. Additionally, amid concerns over Brexit and going into the realms of the unknown, many EU producers have shied away from supplying to the UK. Therefore, Q1 2021 is forecast as having a tightening on supplies and pushing up prices.

Raw Material Costs

Rising raw material costs and an increase in tightness of supply has led to multiple price rises. Iron Ore prices have risen to the highest level since March 2013 – an increase of more than 50% compared to the start of the 2020, and unlikely to see any short-term falls.

Worldwide Demand

With manufacturing and industry being encouraged to continue throughout lockdowns, the steel industry has remained busy. In fact, according to the World Steel Association, there was a 7% increase in crude steel production in October compared to 2019. The increase in production directly correlates to demand and therefore it is expected to reach a point where tightening of raw material supplies which inevitably will lead to price rises.