{ "query": "UK construction cost inflation 2024-2026 steel industry benchmarks", "raw_results": [ { "url": "https://coremetsteel.com/news-insights/uk-steel-price-forecast-2025-2026", "title": "UK Steel Price Forecast 2025–2026 | Market Outlook", "content": "##### Steel Market Snapshot (2024 Recap)\n\nIn 2024, UK steel prices saw moderate increases as energy costs settled and imports from Turkey and Asia increased competitiveness. Overall annual movement:\n\n Merchant Bars: +4% to +7%\n Coil Sheets: +5% to +8%\n Structural Steel: Stable to +3%\n Rebar: +2% to +5%\n\nThis forms the baseline for 2025–2026 expectations.\n\n##### Price Outlook for 2025\n\nUK steel prices are expected to rise gradually due to stronger construction demand, global scrap trends, and steady energy costs.\n\n Merchant Bars: +3% to +6%\n Coil Sheets: +2% to +7%\n Structural Steel: Stable to +4%\n Rebar: +2% to +5%\n\nImport pressure — especially from Turkey and India — will help prevent sharp increases, but procurement teams should still expect gradual quarterly rises. [...] ##### Key Factors Shaping Prices\n\n Energy Costs: Still a major influence on mill production costs.\n Scrap Steel Prices: Particularly impactful for merchant bars and rebar.\n Import Competition: Turkish and Asian mills continue to offer competitive pricing.\n UK Construction Demand: Infrastructure and housing projects will support steady consumption.\n Logistics: Reduced freight rates in 2025–2026 improve import affordability.\n\n##### Practical Advice for Steel Buyers [...] The UK steel price forecast for 2025–2026 is a key concern for builders and fabricators as the market shifts after recent volatility. This overview explains the expected price trends and what buyers should prepare for. Steel prices in the UK are entering a period of moderate but steady movement, making 2025–2026 an important planning window for builders, fabricators, and procurement teams. After a volatile 2023–2024 shaped by energy fluctuations and supply chain challenges, the market is now stabilising — but several key drivers will continue to influence costs over the next 24 months.\n\nWorker in Factory\n\nSteel products UK – industrial pipes manufactured to British standards\n\nKey UK Steel Price Trends and Market Outlook for 2025–2026\n\n##### Steel Market Snapshot (2024 Recap)", "score": 0.76300776, "raw_content": null }, { "url": "https://publications.turnerandtownsend.com/global-construction-market-intelligence-2025/global-construction-cost-trends", "title": "Global construction cost trends - GCMI 2025", "content": "In developed regions, construction inflation rates continued normalising in 2024, as the effects of restrictive interest rates and softening demand filtered through the economy. The UK recorded an average increase of 3.0 percent, while Europe experienced average inflation of 2.9 percent. North America reported 3.6 percent, whereas Australia and New Zealand experienced a higher rate of 4.7 percent for the year, largely driven by a newly negotiated enterprise agreement introducing a payrise for construction labour, though this still marks an improvement compared to previous years. These figures indicate a return to escalation rates more aligned with those seen prior to the pandemic, suggesting greater stability in material pricing and project-related costs. [...] In the UK and North America, construction cost inflation is anticipated to remain steady at 3.5 percent and 3.8 percent, respectively. However, at the time of the survey, uncertainties persist, particularly in the US, where policy changes could have significant implications for construction. Factors such as fluctuations in plant and material costs and deportation policies affecting labour availability are expected to be key considerations influencing future trends.\n\nGiven the potential for rapid market shifts, ongoing monitoring of developments is advised to ensure timely adaptation to changing conditions.\n\n#### GLOBAL\n\n## Construction input costs and global supply trends\n\n### Labour [...] Image 28\n\nConstruction cost growth continues to show signs of easing at the global level. On average, construction cost inflation is projected to settle at 3.9 percent globally in 2025, before rising marginally to 4 percent in 2026, though regional disparities persist.", "score": 0.7348247, "raw_content": null }, { "url": "https://www.uksteel.org/reports-and-publications", "title": "Reports & Publications | UK Steel", "content": "Download the directory\n\n​Closing the Power Price Gap\n\n15 September 2025:UK Steel's new industrial electricity price data reveals that Britain’s steelmakers still face significantly higher power costs than their European competitors despite Government moves to tackle the problem, which undermines competitiveness and investment. New data shows that in 2025/26 UK steel producers will pay up to 25% more for electricity than in France and Germany, resulting in an additional £26 million in costs per year.\n\nDownload the report\n\nUK Steel Statistics 2025 [...] 15 March 2025:UK industrial power prices are notoriously expensive, and UK Steel’s research shows that steelmakers pay up to 50% more than Germany and France. New policy solutions are essential to delivering affordable energy, securing industry competitiveness, and strengthening the UK’s steel production. This independent analysis from Baringa recommends introducing a two-way Contract for Difference (CfD) mechanism.\n\nDownload the report\n\nOffshore Wind procurement [...] 26 November 2024:This report provides a policy blueprint for the Government’s procurement in the imminent Steel Strategy. However, the latest data reveals that one third of the steel it procures is imported, spending £1.5 billion abroad annually rather than supporting UK steel producers. Over the next decade, government steel requirements will exceed £4.3 billion without even accounting for major initiatives such as carbon capture and storage, hydrogen infrastructure, nuclear energy, and offshore wind.\n\nPublic Procurement Report\n\n​Steel Trade Post-2026", "score": 0.657297, "raw_content": null }, { "url": "https://www.arcadis.com/en-gb/insights/perspectives/europe/united-kingdom/uk-construction-market-view-spring-2026", "title": "UK Construction Market Outlook Spring 2026 | Arcadis", "content": "What is the forecast for UK construction inflation?\n\n Construction cost inflation is expected to remain moderate in the near term due to soft demand and competitive pressure across supply chains. However, rising commodity and energy prices, labour shortages, and increased infrastructure investment could create renewed inflationary pressure as market activity strengthens.\n How will building costs change in 2026? [...] The Spring 2026 Arcadis UK Market View examines the forces shaping the UK construction market, from shifts in sector performance and regional activity to emerging cost pressures and long-term infrastructure investment.\n\n## UK construction industry trends, growth, and inflation insights\n\nThe Spring 2026 Arcadis UK Market View provides a data-driven perspective on the forces shaping the UK construction sector. The report combines market research and analysis, sector insights, and forward-looking forecasts to help industry leaders navigate an uncertain recovery.\n\nConstruction growth and sector performance analysis—how residential, commercial, infrastructure, and public sectors are diverging in a two-speed recovery. [...] ## The state of the construction market in the UK\n\nThe UK construction sector has entered 2026 facing an uneven recovery. After a promising start to 2025, activity slowed significantly in the second half of the year, with new build output declining even as the pipeline of future work continued to grow.\n\nAffordability pressures, regulatory complexity, and delayed investment decisions are slowing the conversion of projects from planning to delivery, particularly in the residential sector. At the same time, other parts of the market—including commercial development and infrastructure investment—are showing early signs of renewed momentum.", "score": 0.599087, "raw_content": null }, { "url": "https://www.gov.uk/government/statistics/building-materials-and-components-statistics-march-2026/construction-building-materials-commentary-march-2026", "title": "Construction building materials: commentary March 2026 - GOV.UK", "content": "| Material price indices | February 2025 to February 2026 | January 2026 to February 2026 |\n --- \n| New housing | 3.4 | 0.1 |\n| Other new work | 1.1 | 0.6 |\n| Repair and maintenance | 2.7 | -0.1 |\n| All work | 2.1 | 0.4 |\n\nDownload data for table 1: construction material price indices, year-on-year and month-on-month percentage change\n\nThe material price index for ‘All work’:\n\n increased by 2.1% in February 2026 compared with February 2025\n increased by 2.0% in January 2026 compared with January 2025\n increased by 0.4% in February 2026 compared with January 2026\n decreased by 0.1% in January 2026 compared with December 2025\n\n#### Table 2: construction materials experiencing the greatest price increases and decreases in the 12 months to February 2026, UK [...] | Construction materials | (% change) |\n --- |\n| Imported sawn or planed wood | 7.6 |\n| Gravel, sand, clays and kaolin - incl aggregate levy | 7.3 |\n| Plastic doors and windows | 5.6 |\n| Precast concrete: blocks, bricks, tiles and flagstones | -2.3 |\n| Imported plywood | -6.7 |\n| Concrete reinforcing bars (steel) | -7.2 |\n\nDownload data for table 2: construction materials experiencing the greatest price increases and decreases in the 12 months to February 2026, UK\n\nThe aggregated construction material price indices hide larger price movements for some specific products and materials, table 2 shows the 3 largest increases and the 3 largest decreases.\n\nThe price data used for this publication predates the current hostilities within the Middle East, which commenced on 28 February 2026. [...] These statistics support analysis of the construction materials market and business planning. They are regularly reported in the construction press and are used for a variety of purposes, including policy development, evaluation and monitoring market trends. For further details see the Uses of these statistics section of this publication.\n\n## 3. Summary of results\n\n### 3.1 Material price indices\n\n#### Figure 2: construction material annual price inflation, UK\n\nImage 3\n\nSource: monthly statistics of building materials and components, table 1\n\nDownload data for figure 2: construction material annual price inflation, UK\n\n#### Table 1: construction material price indices, year-on-year and month-on-month percentage change", "score": 0.57006866, "raw_content": null } ], "formatted": "Source: UK Steel Price Forecast 2025–2026 | Market Outlook\nURL: https://coremetsteel.com/news-insights/uk-steel-price-forecast-2025-2026\n##### Steel Market Snapshot (2024 Recap) In 2024, UK steel prices saw moderate increases as energy costs settled and imports from Turkey and Asia increased competitiveness. Overall annual movement: Merchant Bars: +4% to +7% Coil Sheets: +5% to +8% Structural Steel: Stable to +3% Rebar: +2% to +5% This forms the baseline for 2025–2026 expectations. ##### Price Outlook for 2025 UK steel prices are expected to rise gradually due to stronger construction demand, global scrap trends, and steady energy costs. Merchant Bars: +3% to +6% Coil Sheets: +2% to +7% Structural Steel: Stable to +4% Rebar: +2% to +5% Import pressure — especially from Turkey and India — will help prevent sharp increases, but procurement teams should still expect gradual quarterly rises. [...] ##### Key Factors Shaping Prices Energy Costs: Still a major influence on mill production costs. Scrap Steel Prices: Particularly impactful for merchant bars and rebar. Import Competition: Turkish and Asian mills continue to offer competitive pricing. UK Construction Demand: Infrastructure and housing projects will support steady consumption. Logistics: Reduced freight rates in 2025–2026 improve import affordability. ##### Practical Advice for Steel Buyers [...] The UK steel price forecast for 2025–2026 is a key concern for builders and fabricators as the market shifts after recent volatility. This overview explains the expected price trends and what buyers should prepare for. Steel prices in the UK are entering a period of moderate but steady movement, making 2025–2026 an important planning window for builders, fabricators, and procurement teams. After a volatile 2023–2024 shaped by energy fluctuations and supply chain challenges, the market is now stabilising — but several key drivers will continue to influence c\n\n---\n\nSource: Global construction cost trends - GCMI 2025\nURL: https://publications.turnerandtownsend.com/global-construction-market-intelligence-2025/global-construction-cost-trends\nIn developed regions, construction inflation rates continued normalising in 2024, as the effects of restrictive interest rates and softening demand filtered through the economy. The UK recorded an average increase of 3.0 percent, while Europe experienced average inflation of 2.9 percent. North America reported 3.6 percent, whereas Australia and New Zealand experienced a higher rate of 4.7 percent for the year, largely driven by a newly negotiated enterprise agreement introducing a payrise for construction labour, though this still marks an improvement compared to previous years. These figures indicate a return to escalation rates more aligned with those seen prior to the pandemic, suggesting greater stability in material pricing and project-related costs. [...] In the UK and North America, construction cost inflation is anticipated to remain steady at 3.5 percent and 3.8 percent, respectively. However, at the time of the survey, uncertainties persist, particularly in the US, where policy changes could have significant implications for construction. Factors such as fluctuations in plant and material costs and deportation policies affecting labour availability are expected to be key considerations influencing future trends. Given the potential for rapid market shifts, ongoing monitoring of developments is advised to ensure timely adaptation to changing conditions. #### GLOBAL ## Construction input costs and global supply trends ### Labour [...] Image 28 Construction cost growth continues to show signs of easing at the global level. On average, construction cost inflation is projected to settle at 3.9 percent globally in 2025, before rising marginally to 4 percent in 2026, though regional disparities persist.\n\n---\n\nSource: Reports & Publications | UK Steel\nURL: https://www.uksteel.org/reports-and-publications\nDownload the directory ​Closing the Power Price Gap 15 September 2025:UK Steel's new industrial electricity price data reveals that Britain’s steelmakers still face significantly higher power costs than their European competitors despite Government moves to tackle the problem, which undermines competitiveness and investment. New data shows that in 2025/26 UK steel producers will pay up to 25% more for electricity than in France and Germany, resulting in an additional £26 million in costs per year. Download the report UK Steel Statistics 2025 [...] 15 March 2025:UK industrial power prices are notoriously expensive, and UK Steel’s research shows that steelmakers pay up to 50% more than Germany and France. New policy solutions are essential to delivering affordable energy, securing industry competitiveness, and strengthening the UK’s steel production. This independent analysis from Baringa recommends introducing a two-way Contract for Difference (CfD) mechanism. Download the report Offshore Wind procurement [...] 26 November 2024:This report provides a policy blueprint for the Government’s procurement in the imminent Steel Strategy. However, the latest data reveals that one third of the steel it procures is imported, spending £1.5 billion abroad annually rather than supporting UK steel producers. Over the next decade, government steel requirements will exceed £4.3 billion without even accounting for major initiatives such as carbon capture and storage, hydrogen infrastructure, nuclear energy, and offshore wind. Public Procurement Report ​Steel Trade Post-2026\n\n---\n\nSource: UK Construction Market Outlook Spring 2026 | Arcadis\nURL: https://www.arcadis.com/en-gb/insights/perspectives/europe/united-kingdom/uk-construction-market-view-spring-2026\nWhat is the forecast for UK construction inflation? Construction cost inflation is expected to remain moderate in the near term due to soft demand and competitive pressure across supply chains. However, rising commodity and energy prices, labour shortages, and increased infrastructure investment could create renewed inflationary pressure as market activity strengthens. How will building costs change in 2026? [...] The Spring 2026 Arcadis UK Market View examines the forces shaping the UK construction market, from shifts in sector performance and regional activity to emerging cost pressures and long-term infrastructure investment. ## UK construction industry trends, growth, and inflation insights The Spring 2026 Arcadis UK Market View provides a data-driven perspective on the forces shaping the UK construction sector. The report combines market research and analysis, sector insights, and forward-looking forecasts to help industry leaders navigate an uncertain recovery. Construction growth and sector performance analysis—how residential, commercial, infrastructure, and public sectors are diverging in a two-speed recovery. [...] ## The state of the construction market in the UK The UK construction sector has entered 2026 facing an uneven recovery. After a promising start to 2025, activity slowed significantly in the second half of the year, with new build output declining even as the pipeline of future work continued to grow. Affordability pressures, regulatory complexity, and delayed investment decisions are slowing the conversion of projects from planning to delivery, particularly in the residential sector. At the same time, other parts of the market—including commercial development and infrastructure investment—are showing early signs of renewed momentum.\n\n---\n\nSource: Construction building materials: commentary March 2026 - GOV.UK\nURL: https://www.gov.uk/government/statistics/building-materials-and-components-statistics-march-2026/construction-building-materials-commentary-march-2026\n| Material price indices | February 2025 to February 2026 | January 2026 to February 2026 | --- | New housing | 3.4 | 0.1 | | Other new work | 1.1 | 0.6 | | Repair and maintenance | 2.7 | -0.1 | | All work | 2.1 | 0.4 | Download data for table 1: construction material price indices, year-on-year and month-on-month percentage change The material price index for ‘All work’: increased by 2.1% in February 2026 compared with February 2025 increased by 2.0% in January 2026 compared with January 2025 increased by 0.4% in February 2026 compared with January 2026 decreased by 0.1% in January 2026 compared with December 2025 #### Table 2: construction materials experiencing the greatest price increases and decreases in the 12 months to February 2026, UK [...] | Construction materials | (% change) | --- | | Imported sawn or planed wood | 7.6 | | Gravel, sand, clays and kaolin - incl aggregate levy | 7.3 | | Plastic doors and windows | 5.6 | | Precast concrete: blocks, bricks, tiles and flagstones | -2.3 | | Imported plywood | -6.7 | | Concrete reinforcing bars (steel) | -7.2 | Download data for table 2: construction materials experiencing the greatest price increases and decreases in the 12 months to February 2026, UK The aggregated construction material price indices hide larger price movements for some specific products and materials, table 2 shows the 3 largest increases and the 3 largest decreases. The price data used for this publication predates the current hostilities within the Middle East, which commenced on 28 February 2026. [...] These statistics support analysis of the construction materials market and business planning. They are regularly reported in the construction press and are used for a variety of purposes, including policy development, evaluation and monitoring " }