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Energy costs and demand push steel prices higher

NEWS

STEEL industry experts are predicting further price increases for the industry in May due to continuing rises in energy prices and high demand.

Dr Derek Tordoff, director general of the British Constructional Steelwork Association, said: 'There were mill sections price increases of £20 per tonne in October 2005 and again in February 2006.

It is the BCSA's view that a further increase of £20 to £30 per tonne could be expected around May.

'The situation beyond June is not clear because no one knows what will happen in China. But any further increases that occur are not expected to be at levels higher than those predicted for May.

'The view on plate products is that prices have reached their baseline and that some price recovery will emerge in the spring.' The rises come on the back of energy and raw material cost increases for steel mills, combined with higher levels of demand for steel and lower stocks.

Dr Tordoff said: 'The steel market is in a very healthy state at the moment.'