Today's Financial Times quotes Lakshmi Mittal, chairman of the world's largest steelmaker, ArcelorMittal, saying that the changes in pricing for iron ore could push the cost of steel production up by a third in coming months. The company is already pushing through price rises. It won't be long before this filters down to the contractors.
Project costs have fallen sharply during the downturn as the previosly overheated construction market collapsed. Let's see how long it takes for costs to rise once again.
Image - the Ras Laffan cracker by night, Qatar