Steel construction is gaining a major boost in its competitive advantage over concrete structural systems, with steel long product prices expected to continue to fall in coming months, and fabrication capacity and productivity increasing.
Steel long product prices are expected to drop substantially in coming months, in line with steel scrap prices, from the highs reached in mid-to-late 2008. This effect will be fully realised once inventories have destocked to current levels of demand.
Production reinstated
Steel mills are keen to reinstate production for long and flat products, leading to what will be excellent supply conditions for purchasers.
However, the strength and weakness of the New Zealand dollar will influence the extent of price changes.
Steel decking rates have also become increasingly competitive as new profiles have come onto the market and flat product rates soften.
In conjunction with this, steelwork fabrication capacity and productivity has grown in recent months, with new fabrication facilities and equipment coming into production around New Zealand.
This is all leading to some exceptionally competitive bidding on steel construction tenders and development proposals.
The steel construction sector is well known to be one of the most transparently competitive and responsive in the construction market.
The expectation is that these conditions will remain for some time as global economic conditions show signs of stabilising and then entering a gentle recovery over the next two years.
Structural steel framing systems have consistently proven to be the most cost-effective choice for multi-storey buildings in recent years.
A structural steel frame also has significant collateral benefits to the overall project by reducing time scales and variable cost items such as foundations, cladding and services, leading to significant project cost savings.
Steel construction is gaining a major boost in its competitive advantage over concrete structural systems, with steel long product prices expected to continue to fall in coming months, and fabrication capacity and productivity increasing.
Steel long product prices are expected to drop substantially in coming months, in line with steel scrap prices, from the highs reached in mid-to-late 2008. This effect will be fully realised once inventories have destocked to current levels of demand.
Production reinstated
Steel mills are keen to reinstate production for long and flat products, leading to what will be excellent supply conditions for purchasers.
However, the strength and weakness of the New Zealand dollar will influence the extent of price changes.
Steel decking rates have also become increasingly competitive as new profiles have come onto the market and flat product rates soften.
In conjunction with this, steelwork fabrication capacity and productivity has grown in recent months, with new fabrication facilities and equipment coming into production around New Zealand.
This is all leading to some exceptionally competitive bidding on steel construction tenders and development proposals.
The steel construction sector is well known to be one of the most transparently competitive and responsive in the construction market.
The expectation is that these conditions will remain for some time as global economic conditions show signs of stabilising and then entering a gentle recovery over the next two years.
Structural steel framing systems have consistently proven to be the most cost-effective choice for multi-storey buildings in recent years.
A structural steel frame also has significant collateral benefits to the overall project by reducing time scales and variable cost items such as foundations, cladding and services, leading to significant project cost savings.
