Steel - You May Well Have To!

Steel prices may rise by as much as 40% this year, which will increase construction costs in the UK and worldwide significantly. Primarily the growing costs iron ore and coking coal, two of the key raw materials used in the production process, will have greatly effect its cost.

The world’s second-largest mining company, Rio Tinto, has just agreed an average 85% increase in the price of iron ore, while coking coal recently tripled in price.Analysts have consequently upgraded their predictions for steel price rises from around 20% earlier this year to as much as 40% for smaller buyers of steel.

Already last month Nippon Steel agreed a 30% price increase with automotive giant Toyota.
Pricing negotiations on iron ore under way at the world’s other largest mining company, BHP Billiton, are expected to conclude in line with Rio Tinto’s settlement.