Steel prices fall 13.4% in year to August 2015

Oct 14, 2015

The price index for structural steel stood at 87.5 as of August 2015, with the 2010 price set as 100 on the index.

Steel prices have been below 2010 levels for six consecutive months, with August’s rating marking only the second time the index has dipped below 90 since 2010.

The steel price index has seen steady declines since June 2014, with falling prices cited as one of the major factors behind steel manufacturer SSI’s decision to close its Redcar plant with the loss of 1,700 jobs.

The last time steel prices matched 2010 levels was in September 2014. Since then, they have been consistently below the index level of 100.

Overall, steel prices recorded a decline of 13.4 per cent in the 12 months to August 2015, the largest decline of any building material over this period.

Cheaper imported Chinese rebar has also been cited as a factor depressing prices and has led to a split among fabricators, with a group separating from the British Association of Reinforcement.

As revealed by Construction News, seven steel firms have set up a new trade body, the British Independent Reinforcement Fabricators Association, after the industry failed to reach agreement on amendments to standards that may have limited the use of imported rebar.

Elsewhere, other materials prices have remained relatively stable, albeit historically high compared with 2010 levels.

The index for brick prices stood at 121.9 in August, representing a return to the levels seen in January this year. In the 12 months to August 2015, brick prices have risen by 4.5 per cent.

Cement prices continued to edge upwards, with the index standing at 119.4 in August.

Nevertheless, the construction price index for August for all work fell by 2.2 per cent compared with the same month a year earlier, while materials prices as a whole have been falling since June 2014 and are at their lowest point since May 2011.

Source: Construction News