Construction firms in the UK were yesterday braced for higher prices on columns and beams manufactured by steel giant Corus.
After feeling the pinch from the rocketing cost of raw materials, Corus announced that it will put up the price of structural sections by £20 per tonne from October 2.
It comes as customers use up stockpiles of steel sections built up last year, leading to a recent pick up demand for the products which Corus makes mainly at its Scunthorpe site.
Columns and beams are chiefly bought by the building industry and are used in the construction of office buildings and houses, although some are taken by agricultural firms.
Construction is the biggest sector supplied by Corus and accounts for around 30 per cent of business, ahead of other industries such as engineering, automotive and packaging.
Corus said the price rise was necessary because the cost of coal is 100 per cent higher than a year ago and iron ore is 70 per cent more expensive.