ArcelorMittal said it will raise its prices for flat steel products in North America and European markets in 2008, citing expected increases in raw material and energy costs next year.
In the US, the steel group said will raise prices by 40 usd a tonne for strip mill products as of Jan 1, in addition to an average 20 usd/tonne increase already introduced in the fourth quarter of this year.
ArcelorMittal also said that current US prices 'are below prevailing global market levels,' adding that 'low inventories, falling steel imports and relatively robust demand for high quality steels should underpin a realignment of US prices toward global market levels.'
In the EU, the company said it will apply price increases from the second quarter of 2008, reflecting raw material cost increases.
In terms of demand, ArcelorMittal said it expects global growth in steel of around 6 pct in 2008, supported by economic expansion in emerging countries, 'slower but positive growth' in Europe, and an acceleration in demand in North America.