Corus Strip Products UK, part of Corus which is Europe's second largest steelmaker and a subsidiary of India's Tata Steel, has announced minimum hikes in the base prices of its flat rolled products in the UK of £150/mt for hot rolled, £175/mt for cold rolled and of £200/mt for hot dipped galvanized and aluminized, with effect for all orders acknowledged for delivery as of June 30, 2008. The increases follow on from Corus Strip Products' price announcements for mainland Europe in May.
According to the announcement made by the company, a new price extras list is effective from the same date. Corus has added that, recognizing the significant increase in fuel costs, distribution prices will increase by six percent as well.
Corus says the price hike is attributable to the tight market conditions as well as to the cost increases seen in raw materials. The company will enter into discussions with its customers to share opinions about the consequences of the extraordinary cost hikes regarding the current annual contracts.
Corus' strip product division produces nearly 12 million mt of hot rolled, cold rolled and coated strip products at its main steelmaking sites at IJmuiden in the Netherlands and in Wales in the UK.
The company as a whole produces around 20 million mt of crude steel and has annual revenues of over £11 billion.