[lorenzo]

ArcelorMittal, the world's largest steel maker, is going to increase its steel prices by 60%.

It asks car manufacturers and other industries to prepare for the rise.

Arcelor Mittal says the increase is logical because not only have raw materials prices increased, the most basic inputs needed to make steel - energy and transportation - have also become far more costly.

The steel maker says demand for steel remains very strong. But the increased prices could make cars much more expensive in the future.


In Dutch:

Staalprijzen straks met 60 procent omhoog.

http://www.deredactie.be/cm/de.redactie ... al_Arcelor

[Specop_007]

I didnt think there was that much steel in a car??

[anarky321]

consider also the steel used in the factories, in the tooling for those cars and the steel used in the production of all the factories and the tooling for every part of the car at all the intermediate production sites; the tankers that transport those intermediate parts to the assembly sites etc etc when you combine all those things and the price increases that will be passed on to the consumer you'll see that it has a very serious effect on the end consumer as well as all the car manufacturers

[setag]

lorenzo

Please post this news release. I have been all over the English version of this site and I do not see it. Can not believe it just yet!

Thank you.

[Heineken]

Steel is almost as basic to the global economy as oil. Specop is right in saying it is a less crucial ingredient in cars as formerly, but there are so many other things to which steel is vital, like structural girders.

This is an astounding piece of inflation news.

Let's bear in mind that Dow Chemical increased its prices 20% across the board a couple of months ago and just the other day announced another 20% or 25% increase. That's 40-45%. Almost everything you buy has a Dow product in it.

Thank you, Lorenzo, for this report.

[Ludi]

Oh crud.

Guess I'd better rush out in a buying frenzy and get that new metal roofing...

[skeptik]

$this->bbcode_second_pass_quote('Specop_007', 'I') didnt think there was that much steel in a car??

[Reality_Conference]

I have a plastic car, myself. Not much in an accident, but easy on the steel.

I used to work in steel fabrication and that is very interesting news. I guess it doesn't matter what the core product is--food, steel---everything is going up.

[Dreamtwister]

Cue the news reports of people's roofs and sheds being stolen...

[frankthetank]

Scrap prices are going to jump. A lot of older suvs and trucks will be worth way more in scrap.

[emersonbiggins]

FYI - ArcelorMittal had already raised prices by 33% back in April of this year.

World's largest steel producer hiking prices by 33%

[skeptik]

$this->bbcode_second_pass_quote('frankthetank', 'S')crap prices are going to jump. A lot of older suvs and trucks will be worth way more in scrap.

[lorenzo]

Check Google News for English stories.

Apparently, the price hike is only for "automotive steel". (But I can't imagine the other types of steel not increasing equally).

Some mainstream sources:
Forbes:
ArcelorMittal to hike prices paid by automotive industry by 60 pct
http://www.forbes.com/afxnewslimited/fe ... 65419.html

Reuters: ArecelorMittal eyes big car steel price hike
http://uk.reuters.com/article/rbssIndus ... 4020080630

AFP: ArcelorMittal wants to raise car makers' steel prices
http://afp.google.com/article/ALeqM5hwl ... _l-GMYkSPw


The news is based on "a prerelease of a report to be published Thursday."


Wouldn't this suddenly make carbon-fiber and other non-steel composites attractive options for car manufacturers?

[Dreamtwister]

$this->bbcode_second_pass_quote('lorenzo', 'W')ouldn't this suddenly make carbon-fiber and other non-steel composites attractive options for car manufacturers?

[green_achers]

Unlike other commodities, steel and iron ore aren't traded on the commodity markets. So the increases in the prices can't very well be blamed on speculators. I heard a report on NPR about a week ago that the big iron ore producers in S America and Australia were raising prices up to 100%. Then there's this: The main reason cited is shipping costs, i.e., energy, which shouldn't surprise anyone.

[Zardoz]

$this->bbcode_second_pass_quote('Heineken', 'T')his is an astounding piece of inflation news.

Let's bear in mind that Dow Chemical increased its prices 20% across the board a couple of months ago and just the other day announced another 20% or 25% increase. That's 40-45%. Almost everything you buy has a Dow product in it.

[lorenzo]

We have several ArcelorMittal plants here in Belgium.

But what ruined my day was that Interbrew (world's largest brewer, also Belgian), is going to increase beer prices once again by 4 to 6%.


How dare they. It's hot and humid here. They increase prices just when we need our beer most.


Stay off of my Jup and Stella, you billionaire mofos. Don't touch the people's staple food!!!



PS: am willing to trade the steel of my old car for cheaper beer. I crashed my car because of that heavenly drink anyways. So you can have it. But stay off of my pint.

[kpeavey]

Think Infrastructure and construction.
Steel is the strength which supports the endeavors of civilization.
Rebar, I-beams, bolts, nuts, bridge spans, culverts, water mains, sewer lines, construction equipment, wire lattice, tanks, trucks, boat hulls. All the big stuff that allows us to do things in volume are built out of steel.

Think Home and Garden
Nails, screws, nuts, bolts, construction fabric, metal roofs, appliance cabinets, forks, stainless steel anything, wire fence, hammers, tools, roof trusses, cars/trucks/trailers, guns, knives, galvanized steel, pots and pans, rakes, hoes, shovels. I'll bet you can look around your house and find 50 different uses of steel.
Steel is durability.

Think Agriculture.
Combines, harrows, plows, tractors, tillers, mowers, reapers, harvesters, stock fencing,


This news is a pinch in the arm for all of us. All by itself, it would be undesirable, impacting the price of construction, cost of operations and eventually the finished goods we all buy in the store. In the face of what is going on in the world, it will surely aid in exacerbating some problems.

[anarky321]

$this->bbcode_second_pass_quote('Zardoz', '
')We seem to be heading down the path to hyperinflation, don't we?

[heroineworshipper]

93% inflation and housing prices STILL aren't normalized.