TATA Steel, which owns Corus, has announced that it will increase transaction prices for structural sections in the UK by £95 per tonne from March.

Steel prices around the world are rising fast after global steel demand recovered from the lows caused by the financial crisis.

Mick Maloney, Tata Steel’s commercial manager for sections, said: “The recent extreme flooding in Queensland, Australia, has led to spot prices in coal and other raw materials markets, which were already suffering from chronic structural supply side constraints, to rise beyond anticipated levels. The steel supply chain has no choice but to take robust action to recover these rapid increases in raw materials costs.”

Analysts said it was a “substantial“, double-figure increase. Tata makes structural sections for customers in the construction industry .