High steel prices could hit construction industry

Margins may be compressed also due to higher labour costs and lower productivity from social distancing measures

Published Mon, Feb 22, 2021 · 05:50 AM

Singapore

ON its own, the global steel price rally in recent months may not have much impact on the profit margins of those in the built environment sector. But it is another significant headwind that they face in their operations, industry observers said.

Demand for steel is rising as activity picks up across the construction and manufacturing industries.

A January 2021 construction price update from the Building and Construction Authority (BCA) showed preliminary figures for the price of high tensile steel bars of 16-32mm dimensions was S$809 …