Arcelor is likely to post profit due to prices

Arcelor is likely to post profit due to prices

Luxembourg-based steel producer Arcelor will reportedly post its third quarter profit as €482 million due to the price hikes effected thrice since the beginning of the year. According to the forecasts, the company's net income will increase fourfold from €101 million recorded in the previous year. The rise in profit is expected due to the price hikes effected since January 2004. Moreover, Arcelor CEO Guy Dolle announced that they may hike prices 20% as prices of raw materials such as iron ore and coal have increased on the back of Chinese demand. The company paid 20% more for coking coal and iron ore in 2003. Guy Dolle is of the opinion that raw material costs will continue increasing next year and the increases will probably be reflected on the prices. Arcelor sales in the third quarter are expected to reach €6.95 billion, up by 20% against the same quarter of previous year.