Indian giant is latest to increase building materials costs
Indian multinational materials giant Tata is to raise the price of structural steel by £95 per tonne in March because of concerns over rising coal prices.
Tata, which now owns Corus Group, formerly British Steel, said the new price will take effect on all deliveries from Sunday 6 March 2011.
The firm said the rise was down to increasing demand, with production reaching a record of £1.4bn tonnes in 2010.
Mick Maloney, Tata Steel commercial manager for sections, said recent extreme flooding in Queensland had led to spot prices in coal and other raw materials markets rising beyond anticipated levels.
“The steel supply chain has no choice but to take robust action to recover these rapid increases in raw materials costs,” he said.
Tata Steel has written to its sections customers to inform them of the March increase.
The company was not immediately able to confirm what the tonnage price will be once the £95 per tonne increase has been carried out.
The move comes amidst increasing signs of increases in the price of building materials, which is likely to put pressure on contractors with tender prices have showing no sign of rising.
Steel contractor Severfield Rowen on Friday downgraded profit forecasts in part of because of pressure on raw materials costs.