Arcelor responds to CVRD-NSC iron ore deal

Arcelor responds to CVRD-NSC iron ore deal

Arcelor, the leading steel maker in Europe and Latin America, defended that today's price agreement between Brazil's CVRD and Japan's Nippon Steel Corporation (NSC) could not be considered as a benchmark for 2005 iron ore prices as it involves relatively small volumes. Arcelor declared that the amount of the increase, 71.5%, was unacceptable. The company went on to say that they are trying to reach an acceptable agreement with their own raw material suppliers. Arcelor wants any agreement to take into account both a short term vision based on a limited and volatile spot market and a more sustainable medium term strategy that aims to preserve the competitiveness of the steel industry through the entire supply chain, including its customers in the automotive, construction, household appliances and packaging industries.