Global construction sector bears brunt of recent steel price hikes

Over the period January to September 2017, the average cost of steel, purchased for use in the global construction sector, increased by 18.7%. Less substantial, but double-digit steel price rises were also recorded for steel used in the shipbuilding industry and machinery manufacturing sectors. 

North American steel producers were, largely, unable to join the latest recovery in selling values, during the same period. 

Global market prices for steel products, used in construction, may falter in the medium term, according to MEPS International. However, average steel selling figures in early October, for supply to the main consuming regions, remain reasonably firm.

Mill selling figures are predicted to continue to follow a similar pattern to the end of the year. 

Traditional steel price decreases resulting from weather-related market demand are likely to be partially offset by the high cost of mill input raw materials and consumables. However, the prospects of declining prices in the early months of 2018 are ever-present, it is argued.
 

Source: MEPS International