Industry 'confused' by steel price hikes

Rising steel prices are causing considerable confusion to contractors and clients over the actual cost of steel frames, according to the British Constructional Steelwork Association (BCSA).
"Prices are increasing approximately on a quarterly basis and are expected to continue doing so for the rest of this year," BCSA director general Derek Tordoff said. "There is, however, considerable confusion in the minds of many main contractors and clients.
"While steel section prices are expected to increase by circa 50% during 2004, many main contractors think that this equates to a 50% increase in the cost of steel frames - in fact it equates to an increase of circa 25%," Tordoff explained.
"Rebar is increasing at an even faster rate - 50% over the past three months alone - hence steel's competitive advantage over reinforced concrete construction remains," he added.
Corus has announced a price increase for UK structural sections, effective from 30 May. Basis prices will rise by £60/t with additional increases on Category A sizes of beams, columns, parallel flange channels and angles. There will be no change to the temporary supplementary charge.
Corus Sections general manager sales and marketing, Andy Townson, said: "Steelmaking input costs have continued to rise without notice for all steel manufacturers and this latest increase has been made to offset our increased cost burdens."
He added: "It is important that steel consumers take a considered approach to the price rises, working with suppliers to maintain the flow of materials along the supply chain. If everyone in the marketplace works together, we can ensure both the consistency and the sustainability of steel supply throughout this period of rising costs."