Steel prices set to soar

Steel prices are set to soar by up to 33% according to a report in the Financial Times. This is the view expressed today after miners and steelmakers agreed a ground-breaking change in the iron ore price system, based on abandonment of the old annual 'benchmark' iron ore pricing mechanism and adoption of a quarterly spot market price related pricing scheme.

For further news on this, see original FT report.

blogger@steelonthenet.com

2010 iron ore prices increase

It would seem that the iron ore price settlement this year will see a price increase of ~80-90% over 2009 price levels.

In a vociferous response, EUROFER today launched a bitter attack on the iron ore supply sector. A press release issued this morning [see http://www.steelonthenet.com/pdf/Eurofer_11-Mar-10.pdf ], stressed the outrage felt by the European steel industry at the proposed extent of the price increases.

'These increases come whilst the industry is still reeling from the effects of the most serious financial and economic crisis since the 1930s' said EUROFER. 'European Governments should be aware of the implications for the wider economy if these price increases become reality' it added.

blogger@steelonthenet.com