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Building services can't dodge steel punch

A major hike in ductwork prices caused by rising steel costs has hit the UK building services industry, with further price blows feared.
ADCAS, the Association of Ductwork Contractors and Allied Services, represents ductwork manufacturers and suppliers of ancillary parts and says in the last few months its members have reported steel suppliers' soaring prices.

Iain Robertson, joint managing director of Lindab Ventilation said 'Since Christmas we've seen a 25% rise in the price of galvanised steel for the next quarter - and our products are 99% steel. Our suppliers report reduced allocations and have warned us of further increases in the pipeline. Its a volatile situation that makes it difficult to produce accurate price lists.'

Syd Brunt of BSB Engineering Services said 'Steel suppliers are quoting increases as high as £160 per tonne.
'And, although steel is the major component in our dampers, we're also facing increases in the cost of plastic and aluminium. As a result holding prices for up to 30 days is the best we can do.'

Industry sources say the steel price hike was prompted by China and India's reduced export of steel, Russia's high steel prices, coupled with a lack of competition and the pound's weak performance against the Euro.

12 May 2008


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