During the last 18 months the steel industry has experienced a period of stability in relation to galvanised coil prices which in turn has allowed SMD to provide consistency in our approach to costing projects.
This stable cost platform has had a rude awakening of late with large and abrupt increases in coil rates set to increase decking costs for all new projects in the future. Mirroring other parts of the steel sector and as reported in much of the trade press these recent increases in coil price are as a result of both strong domestic demand from construction and automotive industries as well as a reduction in production from key UK coil manufacturers.
To put this into context galvanised coil has recorded an overall increase in cost per tonne in excess of 25% since the end of February 2016 and appears to show no sign of slowing!
Given that such a significant proportion of our rates consist of RAW material, as a business we can only absorb additional cost increases for a limited period before we have no choice but to pass them on.
In light of this you will notice that all new projects quoted from 1st May 2016 will reflect this increased cost.
Discuss this in more detail?
Contact our Business Development Director, Dan Williams for more information