Cost of steel surges by 35%

By Shirley Busteed

27 March 2004: The unexpected sharp rise in the price of steel within the past month may impose significant additional costs for those who are about to embark on a new building project. Suppliers will only quote a week in advance as prices have surged by up to 35% due to a scarcity for steel.

It is believed that the price surge is a result of the excessive demand for steel in China. A significant quantity of steel produced around Europe is being exported to China to accommodate a number of big construction jobs currently on-going in the country. Reinforcing steel has suffered the biggest blow with prices increasing by 35%, while structural and cladding steel have realised increases of 25% and 10% respectively.

The scarcity is believed to continue for the next six months while a price drop may be witnessed in the last quarter of the year, according to Bill McEvoy, chairman, Irish Farm Builders Association.

Grant schemes

Meanwhile, it appears there has been a steady interest from farmers in the uptake for the Dairy Hygiene and Farm Waste Management Schemes.

Since the announcement last autumn regarding the increase in income units from 150 to 450 income units per year, the Department On-Farm Investments Schemes Division in Johnstown Castle, Wexford, has been busy sending out application forms as requested by Teagasc offices throughout the country.

In fact, the Wexford-based office has had to order a second batch of application forms for the Dairy Hygiene scheme.

It is believed that a significant number of forms have already been completed and the feeling from the ground is that this should escalate further post-Fischler, when farmers have made up their minds for good.

The new schemes enable virtually every farmer in the country to get grant aid at the rate of 40%. The investment limit for the Farm Waste Management scheme is now €75,000 while the equivalent limit for the Dairy Hygiene Scheme has increased to €€50,000.

Grants are not given for investments that will assist increasing the level of production on a farm.

In the Dairy Hygiene Scheme, grant aid is provided to increase labour efficiency and milk storage capacity; this includes the construction of a new dairy, upgrading an existing dairy, dairy equipment, construction of new (or upgrading existing) milking premises, milking machine equipment, storing, cooling and refrigerating equipment and facilities for the storage of dairy washings etc.

In the Farm Waste Management Schemes, aid is provided for waste storage facilities, cattle and sheep housing, silage storing facilities, safety features (eg fencing around outdoor tanks), mobile equipment such as band spreaders and associated farmyard facilities such as cattle crushes, collecting yards and sheep dipping facilities.