ArcelorMittal announces second steel price rise
Leading world steel producer ArcelorMittal announced on Thursday a second price rise in two weeks, saying it would increase prices for flat steel in Europe owing to a leap in iron ore costs.
By Agencies |
PARIS: Leading world steel producer ArcelorMittal announced on Thursday a second price rise in two weeks, saying it would increase prices for flat steel in Europe owing to a leap in iron ore costs.
The price rises followed a final agreement on iron ore contracts for this year, the company said.
The chief executive of ArcelorMittal Flat Carbon Europe, Christophe Cornier, said: "Raw materials have reached an unprecedented cost level for our industry.
"It is now important to secure sufficient supply and to overcome all logistic hurdles, to make sure our customers obtain the volumes they require."
On Monday, the three main steel makers in Asia, Nippon Steel and JFE Holdings of Japan and Posco of South Korea, accepted a 65-percent increase in the price of iron ore supplied by the Brazilian company Vale.
Last year they had accepted a price increase of 9.5 percent. The increase of 65 percent is the biggest annual rise since one of 71 percent in 2005 and it marks the sixth such increase in a row.
Demand for iron ore is strong because of a boom in demand for steel in emerging economies.
On February 5, ArcelorMittal had said it would raise the prices of its flat carbon steel in Europe by 12-15 percent from April 1.
The reason given for that increase was a rise in raw material costs and the cost of energy.
But it also said that other price increases might be needed depending on the outcome of talks between mining companies and steel makers on the price of iron ore, a basic material for steel factories.
Arcelor Mittal said on Thursday that it would now raise further the price of its flat steels by 40 euros per tonne, taking the lowest price to 600 euros per tonne for rolls of hot-rolled coil steel and to 680 euros for cold-rolled coated products.
The price of commercial quality so-called quarto sheets would rise by at least 40 euros per tonne.
The new prices would take effect for all new contracts in the second quarter of this year and with immediate effect, the company said.
The price rises followed a final agreement on iron ore contracts for this year, the company said.
The chief executive of ArcelorMittal Flat Carbon Europe, Christophe Cornier, said: "Raw materials have reached an unprecedented cost level for our industry.
"It is now important to secure sufficient supply and to overcome all logistic hurdles, to make sure our customers obtain the volumes they require."
On Monday, the three main steel makers in Asia, Nippon Steel and JFE Holdings of Japan and Posco of South Korea, accepted a 65-percent increase in the price of iron ore supplied by the Brazilian company Vale.
Last year they had accepted a price increase of 9.5 percent. The increase of 65 percent is the biggest annual rise since one of 71 percent in 2005 and it marks the sixth such increase in a row.
ADVERTISEMENT
Demand for iron ore is strong because of a boom in demand for steel in emerging economies.
On February 5, ArcelorMittal had said it would raise the prices of its flat carbon steel in Europe by 12-15 percent from April 1.
The reason given for that increase was a rise in raw material costs and the cost of energy.
But it also said that other price increases might be needed depending on the outcome of talks between mining companies and steel makers on the price of iron ore, a basic material for steel factories.
ADVERTISEMENT
Arcelor Mittal said on Thursday that it would now raise further the price of its flat steels by 40 euros per tonne, taking the lowest price to 600 euros per tonne for rolls of hot-rolled coil steel and to 680 euros for cold-rolled coated products.
The price of commercial quality so-called quarto sheets would rise by at least 40 euros per tonne.
ADVERTISEMENT
The new prices would take effect for all new contracts in the second quarter of this year and with immediate effect, the company said.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
