Steelmakers Grapple With Price-Increase Pressures –

Metals , Steel Dec 28, 2010 No Comments

Higher prices of key inputs such as iron ore and coking coal will force up steel prices in the coming year, but steelmakers may have difficulty passing on the full burden of the increases.

“Real demand continues to grow but at a slow pace. Due to the uncertainty over the 2011 economic picture, apparent market conditions are tough, which makes it a challenge to raise prices despite higher costs running through the business,” said Aditya Mittal, chief financial officer of ArcelorMittal, earlier this month.

Steel prices have ticked higher in recent weeks, helped by customers buying ahead of an expected price rise in the first months of next year.

U.K.-based consultancy MEPS International Ltd. said end-user demand for steel has improved slightly, but it’ still not very strong.

via Steelmakers Grapple With Price-Increase Pressures –

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website