Tuesday 30 September 2008
Rising steel prices could double fabrication costs
KEPPEL Prince fears the growing global demand for steel could see the cost of wind farm towers more than double in 2009.
According to financial forecasts, Australian flat steel plate will cost $2800 per tonne in 2009, up from $1200 a tonne in early 2008.
The company, which fabricates large steel towers for wind farms, is concerned. It also maintains aluminium smelters and does other steel fabrication work. It will use 18,000t of the material in 2008, with usage to jump to 25,000t in 2009.
It is also worried because of the volatile steel market, so it is hard to reliably predict the price of the metal more than 30 days ahead.
The fabricator is looking at importing steel from China, which would cost around $1800 a tonne, at the risk of less reliable supply.
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