Rising costs in a strong market can be absorbed. Rising costs in a flat one cannot.”
FEATURE
At work – Danny Brown of SCH Site Services.
Rising costs in a strong market can be absorbed. Rising costs in a flat one cannot.”
consumption, questions remain about domestic capacity. British Steel is planning on supplying 120,000 tonnes of steel to ports in Nigeria while losing approximately £ 700,000 per day at its Scunthorpe facility, according to reports.
Meanwhile, both Tata and ArcelorMittal paused supply before returning with price increases, while British Steel controlled reopening of its order book, all signals of a market operating with limited slack and tighter availability.
“ When mills take a cautious approach to accepting orders, it usually points to tighter availability and less predictable lead times,” Gary notes.“ Both push prices upward. As imported steel becomes more complex and expensive due to quotas and carbon measures, reliance on domestic supply increases, but that means fabricators are more exposed when local supply tightens.”
The changes are already forcing operational shifts across the sector. Estimating windows are tightening as price volatility increases, while procurement
decisions are being brought forward to avoid the July tariff deadline.
Cashflow pressure is mounting as higher material costs tie up working capital, with many fabricators forward-buying steel to mitigate tariff risk, further straining their financial resources.
Conversations around fluctuation clauses and re-pricing are becoming standard practice rather than exception. For fabricators working on fixed-price contracts, sudden tariff-induced increases can quickly erode or eliminate project profitability entirely.
Steel production remains highly energy intensive, with UK producers facing higher electricity costs than European equivalents. Recent instability in global energy and oil markets, particularly linked to Middle East tensions, has added another layer of unpredictability. And when energy and oil costs rise, steel prices tend to follow.
With the UK’ s current steel safeguard measures due to expire in June and no clear long-term replacement in place, the market faces a period of turbulence. The EU continues to protect its own market, increasing the risk of price volatility and supply shifts in the UK.
Carbon border mechanisms such as CBAM, now active in Europe and approaching in the UK, are also complicating sourcing decisions. Imported steel is no longer just a question of cost: it’ s increasingly about compliance and long-term risk.
“ This isn’ t a short-term fluctuation,” Gary warns.“ These announcements are part of a broader reset in how the steel market operates. Energy remains volatile. Policy is still evolving. Supply is cautious.
Demand is steady at best.
“ For UK steel fabricators, that combination leaves little room for error and makes commercial awareness, timing and control more important than ever. The question the government needs to answer is whether protecting domestic production is worth risking the construction projects that would use that steel.”
Structural steelwork contractor SCH delivers construction projects throughout the north for many tier one and tier two contractors.
The company was founded in the early 1990 as Spennymoor Crane Hire, with four cranes and four drivers, but later developed into SCH Site Services.
In 2011 the company underwent restructuring and widened its service offering and it now has a turnover of £ 7m per year.
From its headquarters in Newton Aycliffe, the business manufactures and installs more than 5,000 tonnes equivalent of structural steelwork per year for various sectors of the construction industry.
Having its own fabrication, surface treatment lines and site teams has further enhanced its reputation as a company that provides accountability and reassurance on all projects and for all clients, and it has secured contracts across multiple sectors of construction.
These include refurbishments of large shopping complexes and projects in the commercial, education, retail, energy, health, residential, industry and infrastructure, leisure and defence sectors.
SCH continually invests in its workforce and the future of the company, employing new staff and updating its Newton Aycliffe facility.
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