March 12th, 2011 - Market Stats
Sheffield U.K. - Steel cost increases set to push up fencing prices by up to 15% in April
A huge rise in the cost of steel rod, equal to the last peak nearly four years ago, could force up the price of some stock fencing by up to 15 per cent in April. That’s the warning from Betafence, which makes the Rylock range of stock fencing, barbed wire and fencing wire, following an announcement by TATA Steel, the UK’s main supplier of steel rod. TATA Steel plans to increase the price of steel rod, the main component of Rylock fencing, by between £125 and £150 per tonne from April 1st. TATA Steel says the rise is due to the climbing costs of iron ore and coking coal coupled with market demand. Kevin Steers, General Manager at Betafence UK which is based in Sheffield, anticipates other steel mills around the world will follow TATA Steel’s lead.
Kevin Steers, Betafence UK General Manager, and steel rod at the Sheffield factory.
Kevin Steers said: “Whilst it is difficult to predict steel prices, there is usually a global trend and the majority of steel mills worldwide tend to increase prices at the same time. “Consequently, we now anticipate that the cost of steel rod will increase to levels not seen since the last peak in August 2008. Inevitability, this will affect the cost of making products such as Rylock and may drive up selling prices by 15%.”
