News
Steel Prices offer relief for Construction Materials Shopping Basket Guide
The latest Civil Project partners Construction Materials Shopping Basket Guide has offered a little respite for firms feeling the pain of escalating materials costs within the construction and infrastructure sector.
Having recorded an overall growth of 23% since its inception in March 2021, the guide’s overall growth dropped 1.6% in the previous quarter on the back of a 10% decrease in steel costs.
“In the previous quarter, we have seen prices stabilise for steel and quarry materials, with a slight increase for asphalt and concrete. However, in positive news we have seen a 10% decrease in the cost of steel, which is alleviating a little of the pressure on costs,” said Ryan O’Neill.
But it isn’t all good news, with Ryan predicting that challenges lay ahead if demand returns following the European winter and reduced demand in China.
Therefore, the major cost pressure seen on project planning and delivery have remained extremely challenging. With current declines in crude oil prices, a warm European winter and COVID measures reducing demand in China, materials cost growth may slow, however, as China reopens and demand increases in the middle of 2023, estimators tendering on works planned over this year will need to factor in risk of 10-15% higher fuel costs,” said Ryan.