Sunday, 16 May 2010
ArcelorMittal said that it will raise European steel prices as much as 16% after an overwhelming surge in the cost of iron ore and coking coal.

Mr Michael Pfitzner head of marketing and commercial coordination at ArcelorMittal said that it will increase benchmark European hot rolled coil prices to EUR 650 a tonne in July 2010, from EUR 560 to EUR 620 a tonne currently. Prices may climb a further EUR 20 to EUR 30 a tonne later in the third quarter because of a weakening euro.

He added that "We have to pass on our additional raw material costs. The impact of raw materials has become so overwhelming on our total cost structure that there is no way to keep these kind of changes on our side alone."

Mr Pfitzner said that "We will continue to talk on an annual basis and have annual contracts. We are currently developing, together with our customers, a formula which allows prices to automatically adapt to the latest change in big cost elements like raw materials."

He added that ArcelorMittal will raise cold rolled coil to EUR 730 a tonne and galvanized steel to EUR 740 a tonne in July 2010.

(Sourced from www.bloomberg.net)