The cost of nails, screws and collated fasteners and fixings will rise in the coming weeks due to global steel price inflation, two of the industry’s main representative bodies have warned.
The British Association of Fastener Distributors (BAFD) and the Power Fastenings Association (PFA) have both warned that their members will have little choice but to pass on increases being experienced.
Steel manufacturers worldwide have been levying hefty price rises due to drastic cost increases in raw materials such as iron ore, coking coal and scrap, while construction growth in China and India is creating more demand for steel. Higher freight and fuel costs as well as concerns about steel shortages are also fuelling price inflation.
BAFD, which has just issued a price information sheet to members, reported susbstantial rises in the past seven to eight weeks.
“People who are importing steel into this country are placing orders today which are 50% higher than they were at the end of 2007,” said BAFD vice-chairman Geoff Hopwood. “This is something some people have never seen in their lifetime.”
He said distributors of fixings and fasteners had no choice but to increase their own selling prices to customers.
Meanwhile, the PFA said steel prices had risen 35% since October 2007, with a further rise of 20% during the rest of the year.
PFA chairman David Black said the association’s members had seen collated fixings and fastener prices rise 15-20% since last October, with members looking to raise prices in coming weeks and months.
“Manufacturers of our products have been on allocation by the manufacturers of wire rods,” he added.
The BAFD is lobbying against a campaign by European fastener manufacturers who want anti-dumping duties on Chinese fastener products of between 95-195%.
