Steel price increases explained

In March 2008, UK Steel issued a paper summarising developments in the global steel market and the implications for steel prices in the UK .

Since that report, steel prices worldwide have continued to rise rapidly. The present report therefore updates the earlier data. Its objective is to explain the underlying causes of these price trends; and to reassure UK steel consumers that it is a global phenomenon: overseas consumers are equally affected by these developments.

In particular, it takes into account:

• The 200% increase in coking coal prices.
• The surge in scrap prices.
• Developments in steel product prices up to June 2008.
• Recent announcements and/or reports of further price increases from July.