Smorgon Steel hikes prices due to raw material costs

Smorgon Steel hikes prices due to raw material costs

According to recent news in the market, Australian steel producer Smorgon Steel is to implement price increase by 5% to reinforcing steel bars to be in effect as of March 1, 2004 and a further 5% to be in effect as of April 12, 2004. The company has recorded 16% decrease in its earnings for the six-month period ended on December 31, 2003 due to rising raw material costs and strong Australian Dollar, which led to cheap imports in the country. An official from Smorgon Steel stated that cheap imports made it impossible for the company to compensate surging raw material costs. The share of imported tubing and merchant bar in the market is reported to have reached 30% and 14% levels, respectively.