On December 6, Tata Steel, the Indian steel giant which also has operations in Europe, announced that it will raise transaction prices for structural sections in the UK by £50/mt effective on all deliveries from January 2, 2011.
The increase is necessitated by continuing high raw materials costs and the need to set new, sustainable market levels in the New Year, the company said.
Commenting on the issue, Mick Maloney, Tata Steel commercial manager for sections, said, "Stock levels in the structural sections supply chain are low at present. We expect demand to improve in the New Year, because inventory will have to fill up ahead of the return of the construction season towards the end of Q1 2011."