ArcelorMittal to Boost Steel Prices $250 a Ton for U.S. Buyers

Discussion in 'Economics' started by ASusilovic, Apr 16, 2008.

  1. ArcelorMittal, the world's largest steelmaker, plans to boost prices on some contracted steel shipments in the U.S. by $250 a ton to recoup surging costs for energy and iron ore.

    The surcharge will be added to all orders of flat-rolled steel for shipment May 5 and later, according to an April 14 memo to sales personnel from D.G. Mull, executive vice president for sales and marketing. The Luxembourg-based company won't add the charge to spot sales or contracts that already allow prices to fluctuate, the memo said.

    ArcelorMittal wants to take advantage of soaring global demand to pass on higher costs for iron ore, the main ingredient in steel, and the energy to produce and ship the metal. U.S. prices for flat-rolled steel rose to $740 a ton in March from $665 a month earlier, according to Purchasing magazine.

    ``The key is going to be, does everybody else go along with this?'' said Charles Bradford, a metals and mining analyst at Soleil Securities in New York. ``You can bet that the auto guys are going to be yelling and screaming about it.''

    U.S. steel prices are climbing even as demand stagnates because higher prices in other regions and a weak dollar are attracting the exports usually destined for North America. Hot- rolled coil, another key industry product, may now cost a record $1,000 a ton on the spot market, according to Robert Miller of Miller Mathis, a New York investment bank focused on steel.

    Outsch ! 250 USD more ? That hurts !
  2. Scrap steel theft will get out of control. :mad: