Steel price hikes ‘makes concrete a better first cost option’
15:45 10 Mar 2004
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The Concrete Centre is using the price hikes the steel industry is currently experiencing to promote the cost advantages of concrete frame buildings over steel frames.
Steel section prices for construction increased by £23/t in the first quarter of 2004, with further increases of £30/t announced for quarter two.
It is anticipated that these will be followed by £30/t hikes in the third and fourth quarters, marking a rise of 35% to 40% in the space of a year.
"These price increases undermine any steel frame industry arguments of competitiveness against concrete," said Dr Andrew Minson, head of structural engineering at The Concrete Centre.
"It is already widely accepted that concrete, with its inherent robustness, thermal efficiency and fire resistance, offers long-term whole-life cost advantages over steel. Now we are seeing confirmation of concrete offering a better first cost option as well."
In response, British Constructional Steelwork Association (BCSA) director general Derek Tordoff said: "All steel products are being affected by the price hikes, including re-inforcing bars, which are used in reinforced concrete.
"The Concrete Centre is hiding the fact that the cost of rebar is also going up. I would say, therefore, that it is doing a disservice to the concrete industry by hiding this fact."
He continued: "The steel industry has been open and transparent right from the start of the price hikes, thus allowing its customers to plan accordingly for the price increases."