Although demand has remained subdued with slowing new house building and the economic conditions putting pressure on the RM&I sector, sales are generally more robust than predicted at the end of 2022.

Price inflation has eased, and we believe that the poor showing in Q4 2022 was perhaps more influenced by supply chain destocking than previously thought and that underlying demand was stronger. Forward looking price expectations are for price stability with generally high stock levels in the supply chain providing a dampening effect on any short-term price movements.

Most suppliers are now progressing with test programmes for UK Conformity Assessed marking (UKCA) which replaced CE marketing. Indications at this stage are that UKCA product will be available well ahead of the deadline of 30th June 2025. Similarly, for construction products without a harmonised standard which have a European Technical Assessment (ETA) the work needed to create a similar UK Technical Assessment (UKTA) as a route to UKCA seems to be broadly underway.

Another cloud on the horizon is the introduction of the Carbon Border Adjustment Mechanism (CBAM) by the EU. While this does not affect GB, it will impact Northern Ireland, where imports of steel products including fasteners and fixings will have to report weights and countries of origin from October 2023. Over the following years, this will extend to a financial liability on imported steel. The UK Government currently has a consultation underway on a similar mechanism for the UK. Initial expectations that any measures were some time off have been challenged by the need for state support for the UK steel industry, and a carbon tax on imported steel and steel products may be a way to provide protection and funding. This may result in measures being in place sooner than originally expected, which would likely put additional cost onto steel products sourced from the Far East, which is most products.