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Ductwork industry hears steel giant's price fall forecast

The UK's ductwork industry has been told to expect steel prices to fall by January.
Ductwork industry hears steel giant
A representative for steel giant Corus told UK ductwork specialists, gathered at a ADCAS meeting in London, that ex-mill steel prices would fall. However, just how low that fall might be Richard Allen business development manager at Corus Strip Products, refused to say.

'It all depends,' he said, 'on the downturn in demand and the forecast drop in the prices of fuel and raw materials.'

Richard Allen said Corus, responsible for more than half of Britain's steel, had no control over margins added in the post mill supply chain.

Allen also said steel prices were likely to be volatile for some time to come.

A spokesman for ADCAS (the Association of Ductwork Contractors and Allied Services) said 'The ductwork industry has faced sharp rises in steel prices this year and any relief will be welcome'.

ADCAS president Malcolm Moss said at a critical time for the ductwork industry and the whole economy, the association was facing up to the challenge with new initiatives designed to support members.

'We've just launched our legal helpline', said Malcolm Moss. 'Our smaller member companies don't have large human resources departments, let alone specialist legal sections. Our new service will help members tread a path through the labyrinth of employment and contract legislation.'

'In September,' said Moss, ' I signed on behalf of ADCAS the Partners in ductwork excellence agreement with the HVCA Ductwork group. This important agreement will serve to cement a closer relationship between our two associations and will assist us in working together for the common good of all our members'.

Moss went on to talk about other key issues facing the industry. He said 'This closer relationship will enable us to make real progress on a range of technical issues - not least the question of zinc coating on ductwork. Currently most UK manufactured ductwork and components must have an internal and external coating of zinc over the galvanized steel, averaging 275 gsm over both sides. Other European producers, however, can supply imported duct components such as flanges, doors and spiral fittings with a thinner coating, which gives them a distinct cost advantage.'
12 November 2008

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