The world's largest steelmaker ArcelorMittal has indicated price hikes for flat rolled steel products next year in the North American and European markets, citing expected increases in raw material and energy costs.
In a statement on the issue, ArcelorMittal said that in the US the company will further raise prices by $40/mt for deliveries of strip mill products as of January 1, 2008, in addition to the average $20/mt increase already introduced in Q4 this year. The group added that low inventories, falling steel imports and the relatively robust demand for high quality steels should underpin a realignment of US prices toward global market levels.
Meanwhile, the company said that in the EU it will apply price hikes from Q2 of 2008, reflecting raw material cost increases, and added that developments in the European steel market continue to be positive despite the expected slowdown in economic growth after two years of exceptional demand.
Commenting on the situation, CEO of Flat Carbon Europe Christophe Cornier said, "We are convinced that strong demand in China and very expensive freight rates will help to rebalance the European inventory situation within the short term and create an excellent basis for further positive developments during the year 2008."