STEEL PRICES SOAR DUE TO LACK OF AVAILABILITY

Raw material prices, including steel, have increased sharply.

The rising prices of aluminised and stainless steel, along with global steel shortages and increases in commodity costs, are driving volatility in the prices of its pipe references, warns emissions product maker BM Catalysts.

The company notes that costs of aluminised tubes are now 62 percent higher than they were at the start of the year, with the manufacturer also being warned of a price increase of over 100 percent on its stainless-steel coil supplies going into 2022.

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This is partly down to various steel market pressures including UK base price increases; an increase in price of ferrochrome, an alloy used in the production of stainless steel (which shows no indication of this slowing down); as well as rising nickel prices.

The removal of export tax incentives on Asian stainless steel also means prices are now less competitive in the UK and European market, while container shortages are further exacerbating the cost of importing steel from Asia.

READ: RISING MATERIAL PRICES ‘HERE FOR THE LONG TERM’ WARNS PRODUCER

Mark Blinston, BM Catalysts Commercial Director, said: “One of the main issues at play is demand and supply, as many steel mills closed or significantly reduced their output during the early days of the coronavirus pandemic. Surging demand since then has put pressure on the ability to keep up, which naturally leads to supply shortages and rising costs. It’s a similar situation to the increased prices of building materials we’ve seen in the news in recent months.”

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