ArcelorMittal wants to raise car makers' steel prices

Written by Agencies | Frankfurt, June 30: | Updated: Jun 30 2008, 19:05pm hrs
The world's biggest steel company, ArcelorMittal, wants to raise prices for car makers by about 60 per cent owing to a spike in cost of raw materials, a press report said on Monday.

"Our cost increases correspond to this level. We are looking at progressive steps to adapt the price while avoiding a large and painful increase next year," ArcelorMittal Vice President Jean-Luc Maurange told the German magazine Auto Motor und Sport.

"The imbalance between supply and demand is long-term," he added in comments that were to be published on Thursday.

"That is why the market price of steel has doubled in a year, rising from 600 to 1,200 euros a ton," or 950-1900 dollars, said Maurange, who works at ArcelorMittal's automobile division.

The group supplies about 23 per cent of the steel used by German car makers, and its market share across Europe reaches 50 per cent, the magazine said.

ArcelorMittal has announced several price increases since January, in particular for flat steel products, amid strong demand and sharply higher commodity prices.