BEAMA Installation members have warned that global price rises in the steel industry will have a massive effect on their ability to control the cost of cable management products.
The metal cable management market in the UK is bracing itself against escalating steel prices amidst fierce competition in the sector. BEAMA Installation members have told EMC that contractors should prepare for price rises in steel cable management products following the latest price increases of 6-8%, imposed in January by Corus, Arcelor and other European steel suppliers.

The price rises in steel come on the back of an unprecedented demand from the Asian market, particularly China. This demand is so great that prices in America and the Far East have already rocketed above those currently charged in Europe. As a consequence, historically low priced imports from countries including the Ukraine, South America and South Africa are now going to China instead of onto the European market.

UK steel prices have been growing steadily since April 2002 – they are now 12% higher than two years ago. The January 2004 increase is due to be followed by another, larger leap in April and analysts are forecasting the largest price increase ever seen for steel products in Europe.

BEAMA Installation has issued a statement, saying: "These are turbulent times for steel and many raw material commodities. These were in plentiful supply over the last two decades but are now becoming scarcer because of the massive growth in demand for steel in China. This means that UK steel prices will continue to rise quite significantly."

Corus says that following the 7% increase in January, a further substantial increase in April is unavoidable. A company spokesperson said: "Last November we announced a price increase of 7% for all galvanised sheet products. Increases in [the cost of] iron ore, scrap prices and bulk shipping costs, caused by the surging demand from China, have not yet been fully factored into this price increase. Therefore, we expect to announce an even more substantial increase from April 2004, which will take into account these unprecedented events worldwide."

BEAMA Installation believes that its members will have no choice but to apply substantial price increases themselves to survive and continue to provide a quality service. Members in this sector include: Legrand, Metstrut, Unistrut, Vantrunk, Tyco, Barton, Stephen Glover and Band-it.

Source

Electrical and Mechanical Contractor