British iron and steel company British Steel announced a new increase in steel prices, increasing the price of construction steel by £100 (approximately $121) per ton.
Earlier in March of this year, the company raised prices for the same steel products by £250 per tonne.
European heavy industry is suffering from a sharp increase in electricity prices, which is hitting energy-intensive producers the hardest. Regional benchmark electricity prices rose to record highs on Tuesday.
Some manufacturers have reacted with supply cuts - zinc producer Nyrstar announced on Tuesday it will shut down production at a major steel plant in the Netherlands - while others, such as British Steel, are seeking to pass on rising energy costs to customers.
However, the situation in the EU and UK steel industries could become even more difficult, as steel prices in Europe decline in anticipation that weakening economic activity in the region will lead to a drop in demand.
Inflation in the UK in July jumped to the highest level since February 1982 - 10.1% in annual terms. In June, this figure was 9.4%.