The credit crunch and mezzanine floors Mezzanine floors and planning permission

Prices of mezzanine floors forecast to rise

February 24, 2011

steelpricegraph1 300x204 Prices of mezzanine floors forecast to rise

Is raw material price turmoil returning?

Now could be a good time to place that mezzanine floor order to beat expected steel price hikes.

Steel industry analysts and top executives are anticipating price increases of up to 66 per cent in 2011, inflation on a scale encountered in the steel industry only once in the past 70 years.

Increases in raw material costs are feeding through steel production and will have a knock on effect upon the price of finished goods, particularly structural products with large steel content such as mezzanine flooring and storage equipment.

Steel manufacturers are also globally pushing up profit margins damaged by the slump of 2008 and 2009.

A cross section of industry experts comprising  6 senior executives and 10 analysts were asked by the Financial Times where steel prices would be at the end of 2011, with an average annual increase of 32 per cent being projected, the top projection being 66 per cent.

Senior industry executives were more conservative with estimates ranging from 13 to 25 per cent whilst analysts took a wider range of positions, but the consensus was that increases well above inflation can be expected.

Not surprising perhaps considering that rising iron ore and coking coal costs have led to a price increase of basic steel over the past two months equivalent to 33 per cent annualised.

Steel cost is a major factor in mezzanine flooring costs, so significant increases in raw material prices will filter through to end users.

Similarly 38mm particle board supply in the UK has recently been constrained by loss of capacity and more competition for feedstock and is subject to increasing energy costs leading to upward price pressure which will be felt by customers.

If you’ve been sitting on fence, then now could be the time to commit, or you may be kicking yourself by the end of the year.  Who knows, the steel alone appears likely to be a sound long term investment!

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