Jobs fear over soaring steel prices

Rising steel prices could soon force a Midland fencing firm out of business with the loss of up to 30 jobs, according to its worried boss.

James O’Sullivan, who owns Vicraft Ltd in Brownhills and Temporary Fencing Supplies in Aldridge, says he will be forced to close if the current price rise continues at such a pace. A month ago, he could buy steel for just £450 a ton but the price has now increased to £750 a ton, Mr O’Sullivan says – and he fears that this spells trouble for his business.

He lays the blame at the feet of the construction industry in China and Dubai for creating a demand which far outstrips supply.

Mr O’Sullivan manufactures builders’ tressles, palisade fencing, roadwork and sign frames.

Vicraft Ltd, which is based in West Coppice Road, has been established for 20 years, and Temporary Fencing Supplies, in Northgate, for five years.

Mr O’Sullivan, aged 30, said the rising price of steel, and the pace at which it has risen, was getting out of hand.

“The situation is simply crazy now,” he added.

“It has gone beyond a joke.

“In the last month, the price of steel has risen from £450 to £750 per ton,” Mr O’Sullivan added.

“This is a massive rise, and as a businessman I simply can’t afford to keep paying these prices. I can’t stockpile steel, because of the threat from thieves. The situation has spiralled out of control, and I really do fear for the future,” Mr O’Sullivan said.

He added that he thought the situation could only get worse for his business.

“I can’t see how the businesses can continue if the situation carries on like it is at the moment, and I don’t see the situation getting any better,” he said.

“We all believe the situation will get much worse and the price of steel will rise even more. I fear jobs will be at stake.

“The problem has arisen due to the huge demand for steel from China and Dubai,” he added.

“The demand is far greater than the current supply, and it is causing the cost of steel to go through the roof.

“I just hope the situation will improve, or it could be curtains for us.”