The cost of steel could rise by as much as 40% this year, which would have a direct implications for construction charges.

This follows a dramatic increase in the price of iron ore and coking coal, two of the main components in steel making.

It is inevitable that this price hike will be passed on to customers, which include building materials suppliers.

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One of the world's leading mining firms, Rio Tinto, has recently agreed an 85% price rise in iron ore, with the cost of coking coal almost tripling.

An additional rise of 40% is now forecast, which is double previous predictions, made earlier this year.

Last month a price increase of around 30% was agreed between Nippon Steel and motoring giant Toyota.

Another leading steel excavator, BHP Billiton, is current negotiating on the price of iron ore and is expected to settle on similar terms as Rio Tinto's agreement.

(PR/JM)