British Steel has increased its section prices from the $1400-1500 range by £250/tonne ($327) with immediate effect.
Notices were issued yesterday by British Steel regarding the extraordinary increase blaming the war between Russia and Ukraine.
The steelmaker said the ongoing crisis has created extraordinary volatility in commodity and energy prices and has caused a significant disruption to international trade flows.
He told companies that he would only leave capacity for reservation in the first two weeks of April for production through April 16.
After this date, prices may rise again depending on market conditions.
An official from British Steel said: “Last year we experienced unprecedented growth in short periods of time. In addition to these, electricity has increased, fuel has increased, we are experiencing a continuous increase. And every day we get back to our customers with updates on the current market that is not going well.
Also, steel plate for bridges, which hit £1,400 per ton a few days ago, rose again with a price quote for the 25mm thick product returned at £1,900 per tonne.”
Another steel mill owner told the Enquirer: "Tier 1 contractors and end customers were very good during Covid but I can see the patience of contractors and customers is running out.
The market may be volatile as of today, but with no pricing in two weeks, there are bound to be some consequences as forward ordering is a real issue.
With an average entry of over 18 weeks for steel, the big question is what customers will do.
We have tough times ahead of us.” He made statements.
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