Recent trade actions have had no effect on the availability or supply of structural steelwork to the UK construction sector, nor on UK raw steel prices.
International trade has shot into the headlines recently with Brexit negotiations at a critical stage and the US/China in a ‘trade war’. The problem is that many of the articles on what this might mean for the steel sector conflate the issues and some have come to erroneous conclusions. This article sets out the facts clearly for structural steelwork.
Materials Cost Inflation: There is a broad range of factors that drive raw steel prices including exchange rates, raw material inputs including iron ore, coking coal and scrap, as well as electricity pricing. Combined with overall supply and demand, no one factor is dominant. It is also important to remember that for a typical building, the cost of the raw steel only represents 4% of the total building cost. Continue Reading →