Steel giant Arcelor-Mittal said on Monday it would increase prices for flat steel products in North America and Europe next year as a result of raw material and energy cost increases.
"Arcelor-Mittal announces price increases for flat steel products in NAFTA (grouping the United States, Canada and Mexico) and European markets as a direct consequence of raw material and energy cost increases in 2008," it said in a statement.
In the US, the steel group said in a statement it would raise prices by 40 dollars a tonne for strip mill products as of January 1. That comes on top of an average 20 dollars per tonne already introduced in the fourth quarter of this year.
Arcelor-Mittal 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 European Union, the company said it would apply price increases from the second quarter of 2008, reflecting raw material cost increases.
In terms of demand, Arcelor-Mittal said it expected global growth in steel of around six percent in 2008. That would be supported by economic expansion in emerging countries, "slower but positive growth" in Europe, and an acceleration in demand in North America. In Europe, expected economic slowdown would affect activity "after two years of exceptional demand", but growth would nevertheless remain positive, it said.