ArcelorMittal Wants to Raise Car Makers' Steel Prices

Raw materials increases could result in price hike.

The world's biggest steel company, ArcelorMittal, wants to raise prices for car makers by about 60%, owing to a spike in cost of raw materials, a press report said on June 30.

"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 July 3.

"That is why the market price of steel has doubled in a year, rising from 600 to 1,200 euros a ton," or $950 to $1,900, said Maurange, who works at ArcelorMittal's automobile division.

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

Copyright Agence France-Presse, 2008

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