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.