| News | ||
| ThyssenKrupp eying hike for flat steel products for Q4 - 09 Sep, 2010 | ||
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Reuters reported that Germany's biggest steelmaker ThyssenKrupp is seeking significant price increases for carbon steel flat products. Mr Jost Massenberg board member of ThyssenKrupp unit Steel Europe in an interview told Reuters that it would raise quarterly prices by an average of 3% to 5% for flat rolled steel products effective October 1st 2010 against around EUR 600 per tonne average in July to September quarter. He added that "Annual prices for hot rolled coil would rise by about half or around EUR 200 as compared with the base price of roughly EUR 400 valid on January 1st 2010." He told "A significant portion of annual contracts did not get any price increase during 2010. They are now to be negotiated for January 1 and there we shall see substantial price increases of around EUR 200 per tonne, because the prices in the current contracts are definitely not satisfying." He said ThyssenKrupp is discussing various pricing models for annual contracts, which include a scheme for quarterly surcharges indexed to automatically reflect the spot prices of raw materials without the need for both sides to renegotiate. Separately, it provides customers the option to renegotiate on a quarterly basis the annual supply contracts should raw material prices on the spot market fluctuate dramatically. Steel Europe, estimated total shipments of carbon steel for the year ending September 30 would be at least 12 million tonnes compared with around 9 million tonnes in the previous year. Around 60% of Steel Europe's sales are from annual contracts, with customers mainly coming from the automotive, home appliances and machinery goods industries. The remainder of sale is based on quarterly contracts, which have been volatile this year after miners in spring ditched a long standing system of fixing prices for iron ores annually in favor of agreeing on quarterly negotiations. (Sourced from Reuters) | ||
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