Global steel contract prices expected to rise
According to recent news in the market, in expectation of falling prices in the spot market which hit record highs this year, global steel producers are increasing contract prices for major customers.
Luxembourg-based Arcelor SA, which is currently in the process of negotiating contracts with its customers, including appliance makers, auto companies and packaging producers, announced that prices on contracts for flat-rolled products for 2005 will be at least 20% higher than those on current contracts.
In
Europe, according to analysts' forecasts, European contract prices are expected to be roughly $105 per ton higher than expiring contracts.
In the US, analysts are predicting that U.S. Steel Corp, International Steel Group and AK Steel Holding will negotiate contract prices of approximately $150 per net ton, or 20%, higher than their previous contracts.
Some US steelmakers have expressed that they want to shift their business away from the spot market and into the contract market for the remainder of this year and into 2005, as an influx of steel imports are expected to arrive in the US, thereby pushing spot prices down.