Steel price increases explained

This paper summarises recent developments in the global steel market and the implications for steel prices in the UK.

Global steel demand continues to show strong growth – particularly in a number of key newly industrialising countries. This in turn is putting pressure on the supply of steelmaking raw materials, resulting in rapid price increases – most notably for iron ore. Together with escalating freight and energy costs, these developments are in turn forcing steel producers around the world to raise their prices.

The UK and EU steel market is no exception to this global trend. All producers are rapidly raising their prices as they seek to recover the cost increases. UK Steel’s members understand the impact on UK steel consumers. However, this is a global phenomenon, and UK consumers’ foreign competitors will be similarly affected. Furthermore, as this paper also demonstrates, steel prices still remain historically low in real terms.

Available for download in PDF format.