Wednesday, April 16, 2008

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

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.

Read the full story at Europe

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