Pressure mounts as steel prices rise again
The companies have warned that soaring price inflation in the sector is now undermining supply-side deals, with some shareholders reversing the deals.
The latest £ 80 increase went into effect on Friday evening.
In a letter to the suppliers, British Steel said: “Due to the still high level of raw material costs and increasing pressures on availability, I am writing to inform you that British Steel will increase the transaction prices of structural sections by 80%. £ per tonne. for all new orders.
The steel producer also warned companies that for the coming months, due to strong demand, order acceptance will continue to be done strictly by customer pay-as-you-go.
He said this policy would continue until the end of September, when the situation would be reviewed.
12 months of increases
£ / tonne up: July + £ 30; August + £ 30; Nov + £ 40, Dec + £ 80; Jan + £ 50; March + £ 30; May + £ 50; May + £ 100; June + £ 80
A steel contractor told the Applicant: “We thought the world went crazy last year, but it’s unreal.
“Agreements have been made with shareholders and they are waiving them and demanding a ransom from us.”