The Rising Cost of Steel
January 28, 2021
Despite crisis talks last year between between the China Iron and Steel Association and Australia’s biggest suppliers to the region Rio Tinto, BHP and Fortescue Metals the price of Iron Ore domestically has risen again.
The SCMP is reporting that there will be a market correction in 2021 as the Chinese Government Covid19 stimulus packages wind up; but given the Iron Ore price is at a seven year high, it’s unlikely the self-forecasted market correction will have much impact.
The influence of the price increase of course filters down and is felt locally by Multi Span Australia Group and our clients. Chair Darryl Hood said “The increase since December last year has brought the cost of fabricated steel up to $100/tonne and that rise is expected to continue through 2021. I would estimate structural steel could contribute to a third of the build cost so like everyone else, we are impacted by the local market price changes and availability struggles.
There is always the option of importing fabricated steel at a lower cost but Multi Span Australia Group is committed to sourcing a quality Australian product, even with the price increase. Bypassing imported fabricated steel assures the highest quality product for our clients and quality is something we will not compromise on.”