Corus announces £20/t price increase from July

Corus has disappointed steelwork contractors expecting a freeze on prices by announcing that it is to add £20/t to the cost of reversing mill plate and structural sections from July.

Despite it being less than the £50/t increases added in the past, it has still surprised some in the industry who expected an end to quarterly price hikes.

The structural steel producer said that the increases had been driven by strong global demand for sections and plates and a reduction in UK imports.

Derek Tordoff, director general of the British Constructional Steelwork Association, said: "We are disappointed that there is an increase, but at least it is the smallest rise in some time."

Structural steel sections will now cost more than £900/t, with fabricated and erected costs likely to be taken over £2,000/t.

One steelwork contractor in the North West told CJ: "Depending on the section, it could be as much as £30/t, and for specialist hot-rolled as much as £60/t. This will have to be passed on. If your mortgage went up quarterly you would be upset."

Bob Forrest, estimating manager at Cleveland Bridge, a specialist steelwork contractor, said that continued price rises made it difficult to be firm with prices. "If the award of a contract is late we have to review the price," Forrest said.

"The business has grown used to these increases over the past two years, but there has to be a ceiling some time."