Although it's been known "unofficially" for a week or two, Corus have announced that it will increase the basis for it's flat rolled products in the UK.
The price increases will be at least 150 pounds per tonne for hot rolled steel, 175 pounds per tonne for cold reduced steel and 200 pounds for hot dipped galvanised and aluminised steel, it said.
Steelmakers have raised their prices several times since the start of the year to survive through the sky-high costs of key steelmaking raw materials such as iron ore and coking coal. The Anglo-Dutch steelmaker, owned by India's Tata, Steel, said the price hikes followed increases for European prices in May.
Distribution prices would also increase by 6 percent, the company said, due to a significant increase in fuel costs.
"At the same time, as the direct consequence of a series of unprecedented increases in raw material costs, Corus Strip Products is discussing with its customers the consequences of the extreme cost increases in relation to current annual contracts," the company said in a statement.
Corus' strip product division produces nearly 12 million tonnes of hot rolled, cold rolled and coated strip products at its main steelmaking sites at IJmuiden in the Netherlands and at Wales in the UK.
The company as a whole produces around 20 million tonnes of crude steel and has an annual revenue of above 11 billion pounds.
Original report| Reuters
"Spot" prices have been reflecting this anticipated price increase for several weeks. The latest increases in Europe and the UK have lead to price moves by the cold rollers, who's raw material is hot rolled steel strip.