Steel: global steel price up 30%

On April 1, the steel (SBB) to anticipate possible new iron ore price agreement to promote, as well as some of the raw materials (such as coke, scrap metal, and so on) under the background of price rises, in 2010, the global steelmaker, will increase the cost of 150 USD/ton.

Earlier, Australia BHP Billiton company announced that they had reached with the Asian customers short of new iron ore price agreement. In addition, Japan steel works confirmed that they had with Brazil's Vale signed a price increase in the 90% quarter of about agreement.

SBB believes that for iron and steel manufacturers around the world, many indications that they would face increased costs and pricing agreements are getting shorter and shorter. This means double impact-stable-12 month variable price, will be replaced by the volatile market prices for iron ore, annual agreements were gradually replaced by quarter agreement.

According to the SBB, in 2010, the most integrated steel plant and iron ore purchase price will increase by 90% per cent or more, coke prices will increase by more than 55%, scrap steel prices to double. Compared to 2009, the final cost will be increased $ 150/t.

SBB Chief Editor Roger Manser noted that manufacturers increased cost for transfer, has put many iron and steel consumers at 20% prices, and other 10% of the price increases will also come. "This will lead to cost increases in the construction industry, followed by the prices of automobiles, washing machines and refrigerators. ”
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