Prices have risen on the back of huge demand of steel from abroad, especially from countries such as China, India, Turkey and Pakistan.
A Corus spokesman said: Corus generally respond to what is happening in the globe. You only have to do the maths, with the demand for material from places such as Pakistan, India and Korea. We have seen internationally in the last few days there has been a frenzy so we have had to catch up and make some huge leaps and bounds.
We are responding to the global market and the global demand shift. The thirst for scrap and steel in the world is huge. For instance, if you look at reinforcement bars in Turkey they are selling them for at least $1,000 per tonne. In order to stop people selling material going abroad we need to put the prices higher.
Traders in the ferrous market have responded gloomily to the news that prices have gone up so significantly. Some argue that the high price rise will add more to the financing of business costs and lead to an increase in metal thefts. One trader close to the industry said: Overall this is not good for the sector because whatever goes up must come down and when it comes down it will be with a heavy fall. In a few months time if prices drop, the people with scrap will not make any profits.
Corus also announced that Canroute prices had gone up to £185 per tonne.
Image: Corus cans