The National Association of Steel Service Centres (NASS) has conducted a number of surveys with its members within the UK and its supply base over the last few weeks. Given the significant upward price pressure evident in the steel supply chain, NASS has taken this opportunity to comment and reflect upon current market conditions in the UK as the year 2016 comes to a close and we look forward into 2017.
After the Brexit vote, the first major factor to impact on steel prices has been currency related. The weakening of sterling against primarily the Dollar and Euro has effectively increased steel prices by circa £65 – £70 per tonne. In the second half of 2016 the escalation of raw material prices, particularly on coking coal, iron ore and scrap, has resulted in steel producers seeking to retain acceptable margins by announcing significant price increases to maintain pace with rising input costs of £150 plus per tonne.
Steel producers are being affected by increasing conversion costs due to energy charges and shipping rates influenced by the cost of oil increasing by 60% since the start of 2016. There is an expectancy for steel prices to continue rising throughout 2017 to reflect the import costs and will be influenced further by the supply and demand within the UK market.
At Rhino Steel we are freezing our prices for the rest of 2017, so our customers can be sure they won’t be facing any price increases with us. We understand how even the smallest increases in price can make a massive difference to your business or the cost of your project, which is why we keep the prices as low as we can. We work hard to to give our customers the best possible prices every time, so you can rely on us to provide you with the same great prices as the year goes on and the base costs rise.