Steel procurement trends are shifting, with contractors suggesting shorter price-holding periods and increased market uncertainty driven by global pressures. In this update, we explore the drivers behind this — including the US-imposed tariffs — and assess the short- and medium-term impacts on steel supply, pricing stability, and project delivery. We also outline the potential implications of the UK–US trade agreement and what it could mean for cost certainty and future demand across the construction sector.

What have we noticed?

We have noticed a recent trend in procurement, whereby main contractors are suggesting that some steelwork sub-contractors are only prepared to hold prices for 4-weeks.

Why do we think this is?

This is likely due to the recent volatility in the steel market, caused by the US tariffs being imposed on steel imports worldwide.

What have been the short-term effects?

As a result of the imposed tariffs:

What are the likely medium-term effects?

If UK producers of steel reduce output due to lost export revenue, there is a risk that supply may tighten, rising prices over time.

However, if UK steel becomes less competitive in the US market, reducing exports, then this can lead to a surplus of steel in the UK, especially from domestic producers who were exporting to the US.

As a result, steel prices in the UK may fall due to oversupply, which could benefit UK construction companies in the medium term.

What impact would the US – UK Trade Agreement likely have?

On the 8th of May 2025, a landmark trade agreement between the US and UK promised to deliver the following:

Although this would reduce the benefits of the oversupply of steel, there are likely to be several positive ripple effects on the UK’s industrial and logistics construction sector:

  1. Steel Cost and Supply Stability
  1. Programme Certainty
  1. Boost to Domestic Manufacturing and Logistics Demand
  1. Competitive Advantage in Global Logistics

Positive Industry Outlook

The UK construction sector is optimistic, anticipating better pricing, more predictable supply chains, and renewed investment – now is a great opportunity to get a scheme to market and the team at Goodrich is expertly placed to assist.

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