The UK-based steel producer Corus has announced its plans to increase its domestic wire rod prices further for deliveries from April 28 due to higher coal prices.
In the release on the issue, Corus stated that due to floods and port congestion in Australia, which have resulted in several mines declaring ‘force majeure' on coal shipments, many steelmakers have already cut back production while international coal supplies reached dangerously low levels.
As for the actual degree of the price rise, Corus stated that it is currently unable to specify the level of increase due to the uncertainty in the coal purchase price. The increase levels are expected to be determined following the settlement of the 2008 contract prices for metallurgical coal.