World's largest steel maker to increase prices by 60%

lorenzo · Fission Joined: Jan 01, 2005 Posts: 2228

ArcelorMittal, the world's largest steel maker, is going to increase its steel prices by 60%.

It asks car manufacturers and other industries to prepare for the rise.

Arcelor Mittal says the increase is logical because not only have raw materials prices increased, the most basic inputs needed to make steel - energy and transportation - have also become far more costly.

The steel maker says demand for steel remains very strong. But the increased prices could make cars much more expensive in the future.

In Dutch:

Staalprijzen straks met 60 procent omhoog.

http://www.deredactie.be/cm/de.redactie/economie/080630_staal_Arcelor
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Specop_007 · Expert Joined: Aug 12, 2004 Posts: 6267

I didnt think there was that much steel in a car??
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anarky321

consider also the steel used in the factories, in the tooling for those cars and the steel used in the production of all the factories and the tooling for every part of the car at all the intermediate production sites; the tankers that transport those intermediate parts to the assembly sites etc etc when you combine all those things and the price increases that will be passed on to the consumer you'll see that it has a very serious effect on the end consumer as well as all the car manufacturers

setag · Tar Sands Joined: Mar 23, 2007 Posts: 59

lorenzo

Please post this news release. I have been all over the English version of this site and I do not see it. Can not believe it just yet!

Thank you.

Heineken

Steel is almost as basic to the global economy as oil. Specop is right in saying it is a less crucial ingredient in cars as formerly, but there are so many other things to which steel is vital, like structural girders.

This is an astounding piece of inflation news.

Let's bear in mind that Dow Chemical increased its prices 20% across the board a couple of months ago and just the other day announced another 20% or 25% increase. That's 40-45%. Almost everything you buy has a Dow product in it.

Thank you, Lorenzo, for this report.
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Ludi

Oh crud.

Guess I'd better rush out in a buying frenzy and get that new metal roofing...
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skeptik · Last edited by skeptik on Mon Jun 30, 2008 12:46 pm; edited 1 time in total

Reality_Conference

I have a plastic car, myself. Not much in an accident, but easy on the steel.

I used to work in steel fabrication and that is very interesting news. I guess it doesn't matter what the core product is--food, steel---everything is going up.

Dreamtwister · Fission Joined: Feb 06, 2006 Posts: 2267

Cue the news reports of people's roofs and sheds being stolen...
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frankthetank

Scrap prices are going to jump. A lot of older suvs and trucks will be worth way more in scrap.
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emersonbiggins

FYI - ArcelorMittal had already raised prices by 33% back in April of this year.

World's largest steel producer hiking prices by 33%
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skeptik

lorenzo · Fission Joined: Jan 01, 2005 Posts: 2228

Check Google News for English stories.

Apparently, the price hike is only for "automotive steel". (But I can't imagine the other types of steel not increasing equally).

Some mainstream sources:
Forbes:
ArcelorMittal to hike prices paid by automotive industry by 60 pct
http://www.forbes.com/afxnewslimited/feeds/afx/2008/06/29/afx5165419.html

Reuters: ArecelorMittal eyes big car steel price hike
http://uk.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKL3013674020080630

AFP: ArcelorMittal wants to raise car makers' steel prices
http://afp.google.com/article/ALeqM5hwl89sJff5UlXgaNmD_l-GMYkSPw

The news is based on "a prerelease of a report to be published Thursday."

Wouldn't this suddenly make carbon-fiber and other non-steel composites attractive options for car manufacturers?
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Dreamtwister · Fission Joined: Feb 06, 2006 Posts: 2267

green_achers

Unlike other commodities, steel and iron ore aren't traded on the commodity markets. So the increases in the prices can't very well be blamed on speculators. I heard a report on NPR about a week ago that the big iron ore producers in S America and Australia were raising prices up to 100%. Then there's this: The main reason cited is shipping costs, i.e., energy, which shouldn't surprise anyone.
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