The increase  is the second price rise in as many months after Tata Steel announced a £50 a tonne hike in December.

Tata Steel will raise transaction prices for structural sections in the UK by £95 per tonne effective on all deliveries from Sunday 6 March 2011.

Tata is blaming the latest steel price rise on the continuing growth in world demand and the recent floods in Australia which have led to higher coal costs.

Mick Maloney, Tata Steel commercial manager for sections, said: “The recent extreme flooding in Queensland has led to spot prices in coal and other raw materials markets, which were already suffering from chronic structural supply side constraints, to rise beyond anticipated levels.

“The steel supply chain has no choice but to take robust action to recover these rapid increases in raw materials costs.”

Tata Steel has written to its sections customers to inform them of the March increase.