Steel, copper and aluminium prices all expected to continue rising, consultant says
Consultant Currie & Brown has warned that construction costs look set to set head upwards despite the recent US-Iran peace deal.
An interim agreement was signed last week to end the conflict but both the US and Iran continue to differ on details of the Memorandum of Understanding with Iran earlier this week saying it had closed the Strait of Hormuz – which was disputed by the US.
The firm said steel prices could increase by up to 9.1% by September under a higher oil price scenario, while copper could rise by 5.5% and aluminium by as much as 12.4%.
It said demand for the materials was particularly strong in the data centre and retrofit markets meaning data centre construction costs could increase by up to 6.8%, while hotel projects could see costs rise by around 7%.
Nick Gray, Currie & Brown’s chief operating officer for the UK and Europe, said: “A peace agreement between the US and Iran may have been reached, but the impact on construction will not disappear overnight.
“In the UK, we expect the cost of key materials to remain elevated for some time, as higher oil prices continue to feed through supply chains and manufacturing costs.
“For project owners and investors, the challenge is understanding the risks early and building resilience into delivery plans.”
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