UK-based steelmaker Corus, the European subsidiary of the Indian steel giant Tata Steel, has announced that its Corus Long Products division is to increase transaction prices for reversing mill plate by £60/mt, effective on all orders received from March 22.
According to the company's statement, the increase is in addition to the £60/mt rise that was introduced for reversing mill plate from February 7 following the general Corus Long Products price rise announcement at the end of January.
Carus said that this and other price rises that Corus Long Products is preparing to introduce on its product range during the second quarter are a consequence of significant changes in the reversing mill plate and general steel markets, principally in the form of rising input costs caused by availability constraints. In addition, global reversing mill plate supply chains have destocked and inventories are now considered to be in balance.
Martin Maley, commercial manager of Long Products Business, said, "With rapidly rising costs, steelmakers' working capital requirements are mushrooming and already meagre margins are being eroded. Passing on these cost increases, despite the fragile market recovery, is a must for the steel industry, given the raw materials stranglehold."