Ukraine War Causes UK Steel Price Surge

UK-based contractors overwhelmingly say the war in Ukraine is causing price surges.

Source : Pixabay

May 19, 2022

Author : Alex Bustillos

Nine out of ten contractors in the United Kingdom say prices for construction materials have gone up since the war broke out.

That’s according to Gleeds’ Spring 2022 Market Report.

One key material that saw price increases in March of this year was steel bars, which saw their prices go up 31.6 percent in March over February. Fabricated structural steel rose 19.2 percent month-over-month.

According to the Construction Products Association, 13 percent of UK imported steel products come from Russia and Ukraine, compared to just 1.2 percent of all products in the country.

“Plus, steel construction materials are energy-intensive and energy costs account for between 25 percent and 33 percent of total costs for energy-intensive manufacturers so the recent sharp energy cost rises also contribute to the sharp price rises,” a spokesman for the organization said.

However, the war is not totally responsible for the sky-high prices. Rather, it is compounding an existing issue. Concrete reinforcing steel bars and fabricated structural steel has gone up 63.6 percent and 54.7 percent respectively in the year leading up to April.

Additionally, 78 percent of UK contractors report passing on projects or having a contractor do the same due to “the selected procurement route or tendering strategy on a project.”

Category : International Material Costs Procurement

Related Article