Latest News: How to Cope with Steel Price Headlines in Piling

October 3rd, 2022

How to Cope with Steel Price Headlines in Piling

Reading the news headlines can make any construction-sector company nervous about the price of steel, whether you are building properties, handling infrastructure projects, involved in climate change mitigation or handling projects in the marine sector.

Steel has become an essential component of many projects and steel sheet piles have proven their value in the modern era, due to their ‘lifespan’, resilience and strength. If the price of steel is soaring, what does that mean for project budgets?

Nobody connected with steel is immune from the impacts of global factors. The price of energy has been driven to record levels since Russia invaded Ukraine. Steel production is an energy-intensive process, so the price of steel naturally rises as the cost of energy rockets.

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Notably, in August 2022, British Steel announced that is raising transaction prices for structural sectors by £100 per tonne on all new orders, with immediate effect1. More headlines have shouted of UK steel prices having risen 50% since the Ukraine war began2.

This follows the turbulence that we saw in the global steel market in 20213, when the price of hot-rolled steel hit a record high in Q3, 2021.

With the UK inflation hitting 10.1% in August4, the highest level in the UK since February 1982, and Citi predicting an inflation rate of 18.6% in January 20235, is there any good news at all?

One thing we can say is that, whilst not immune from all of these pressures, Sheet Piling (UK) Ltd exercises the best possible control over pricing of its steel sheet piles, thanks to its long-standing policy of maintaining the highest levels of stockholding in its sector. By virtue of being a specialist sheet piling contractor, and also having stockholding arrangements at Immingham, we are able to better cushion the pricing blows that can hit contractors.

 

Our stockholding is bolstered quarterly, with our shipments from Emirates Steel being regular and guaranteed, thanks to being the exclusive partner of the Abu Dhabi steel manufacturer for both the UK and Ireland.

All of this puts us in a better position when it comes to controlling price fluctuations, than suppliers and sheet pile contractors lacking these arrangements and capacities.

Talk to us today about our pricing, secure your sheet pile stocks as early as possible and carefully consider how global impacts will affect your project. Our team are here to help, where we can, on 01772 794141.


References

  1. https://www.bmsteel.co.uk/News/BRITISH-STEEL-UK-STRUCTURAL-SECTIONS-PRICE-INCREASE-AUGUST-2022/
  2. https://www.thisismoney.co.uk/money/markets/article-10770507/UK-steel-prices-soar-50-Russia-invaded-Ukraine.html
  3. https://www.thefabricator.com/thefabricator/blog/metalsmaterials/steel-prices-dominate-manufacturing-news-in-2021
  4. https://www.bloomberg.com/news/articles/2022-08-17/uk-inflation-rises-more-than-expected-to-40-year-high-of-10-1
  5. https://www.independent.co.uk/news/business/uk-inflation-latest-citi-energy-prices-b2149951.html
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NOTES TO EDITORS
Sheet Piling (UK) Limited is one of the UK's leading piling contractors. Owning and operating a comprehensive range of specialist piling equipment Sheet Piling (UK) Ltd also carry extensive stocks of new and used piles enabling rapid reaction to any urgent requirements or emergency situations.