Steel giant ArcelorMittal is predicting a rise of 70 to 80 per cent iron ore prices for long-term contracts that have to be extended in the coming month, according to Robrecht Himpe, chief executive of the company’s Flat Carbon Europe business.
ArcelorMittal sources two-thirds of its iron ore from its own mines, however Mr Himpe told Dow Jones Newswires that large Asian producers were key to pricing because they were first to negotiate with mining companies. With short-term contracts needing to be extended steelmakers in Asia are expecting a rise of up to 80 per cent.
Mr Himpe criticised the size of the rise saying that buyers needed to find stable levels.
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