ArcelorMittal announced an input cost surcharge for its products in Europe, due to higher energy prices. In a press release, the company said energy prices have increased exponentially to reach record levels throughout Europe.
Current electric charges, the company said, are at €160-200/MWH, compared to a normal rate of €55/MWH. Natural gas prices, meanwhile, are at €100/MPH, compared to a normal price of €20/MWH. ArcelorMittal said the higher energy costs are adding more than €120/mt to the price of steel, and such costs are expected to continue rising.
In addition to energy price increases, suppliers of ferroalloys, lime, and other input materials are asking for energy-related surcharges. Carbon prices alone contribute to €62/mt in higher costs, the company said, having risen from €33/mt in the beginning of this year to €64/mt currently.
ArcelorMittal said that under these circumstances, the company must recoup part of these costs via a surcharge of €50/mt, to be applied to all new price agreements. The surcharge will be withdrawn as soon as energy prices return to normal levels.