Steel construction output set to fall 5% in 2009

Constructional steel output is expected to fall by 5% in 2009, as rising materials prices and the credit crunch start to affect the sector.

But speaking at the British Constructional Steel Association's (BCSA) annual lunch today, BCSA president Richard Barrett said that the underlying demand for steel construction "remains sound".

Output hit a high of 1.462 million tonnes in 2007, although Barrett said that this was expected to fall slightly in 2008 to around 1.4 million tonnes before dropping by about 5% to below that figure in 2009.

Despite this he said: "Steel is in good shape and looks forward to the future with confidence".