Price of steel to soar as coking costs rise

The price of steel is set to soar for construction after an agreement made yesterday that will triple the price of coking coal, the fuel used to make the metal.

An agreement between large Asian steelmaker Posco and Australian miners BHP Billiton and Rio Tinto will push the price of coking coal from just under £50 a tonne (last year's price) to more than £150 a tonne this year.

The Times reported it is part of a wider trend that has seen commodities skyrocket as miners struggle to meet overwhelming demand from the industrialising East.

Analysts expect steel makers to pass on the price hikes to consumers to protect their profit margins, the newspaper reported.