Soaring steel prices put pressure on ductwork

The price of ductwork systems could rise by 10 to 15% as a result of rising steel prices, according to the Association of Ductwork Contractors & Allied Services (ADCAS). The association represents ductwork suppliers and suppliers of associated components and warns that the impact of rising steel prices cannot be avoided. Paul Roxburgh, president of ADCAS, says, ‘We’ve been told that the price of steel could rise by as much as £100 a tonne by the end of this year. My company [Boyd & Co.] buys steel coils of 3 to 4 t to produce rectangular ductwork, and it isn’t hard to see how such a rise in the cost of our raw material would affect us.’ There is also pressure on the price of spiral ductwork. Iain Robertson, joint managing director of Lindab Ventilation, explains, ‘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. It’s a volatile situation that makes it difficult to produce accurate price lists.’ Syd Brunt of BSB Engineering Services says, ‘Steel suppliers are quoting increases as high as £160 per tonne on a “take-it-or-leave-it” basis. There’s no room to negotiate. As a result, holding prices for up to 30 days is the best we can do.’ The pressure on prices is due to China and India reducing exports of steel and Russian prices being too high — so lack of competition means there is no balancing force on market prices. Sterling being weak against the Euro is also harmful to prices.
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