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
