Tata Steel is increasing transaction prices for structural sections in the UK by £95 per tonne from March.
Steel prices around the world were rising fast after global steel demand recovered from the lows caused by the financial crisis.
Tata’s commercial manager for sections Mick Maloney said the recent flooding in Australia had led to spot prices in coal and other raw materials markets, which were already suffering from chronic structural supply side constraints, to rise beyond anticipated levels.
“The steel supply chain has no choice but to take robust action to recover these rapid increases in raw materials costs,” he said.
Analysts said it was a “substantial”, double-figure increase.
Tata supplies steel and related services to the construction, automotive, packaging, material handling and other demanding markets worldwide.