Tata Steel has revealed plans to raise transaction prices for structural sections in the UK by £95 per tonne from March.
Global steel prices are increasing rapidly following the recovery of demand after the lows of the financial crisis.
“The recent extreme flooding in Queensland, Australia, has led to spot prices in coal and other raw materials markets, which were already suffering from chronic structural supply side constraints, to rise beyond anticipated levels,” said Tata Steel commercial manager for sections Mick Maloney.
“The steel supply chain has no choice but to take robust action to recover these rapid increases in raw materials costs.”’
Analysts have described it as a “substantial” double-figure increase.