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Monday 30 June 2008

Rising steel prices to hit European car market

Europe’s car makers could be looking at a 60% price rise in steel.EUROPEAN cars could soon be more than a luxury, with one steel maker claiming Europe’s car makers could be looking at a 60% price rise in steel.
Steel maker ArcelorMittal could be increasing prices stepwise, following the increased costs of steel manufacturing and despite the drop in demand from the United States.
Global steel prices are being pushed up by higher raw material costs, a rise in transportation costs and demand driven by China.
The company supplies around 23% of the steel used by German car makers, with Europe-wide market share of around 50%.
This news coincides with ArcelorMittal’s move to up its stake in Australian miner Macarthur Coal from 14.9% to 19.9%. The increase in holdings is an attempt to secure its own supplies of key raw materials in the face of rising prices.

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