The steel industry repeats alarm over recent developments in raw materials markets.
Brussels, 7 May 2010 - At
In his statement Ian Christmas said, “Steel is a capital intensive and globally critical industry which has a big impact on the economy. It requires long-term relationships between mining companies, steel companies and the users of steel, and recognition of their mutual dependence. The current developments in the raw materials market constitute a breakdown in this relationship and it is in the long-term interests of the complete steel supply chain that this is rebuilt”.
Continuing he said, “Our industry has three major concerns: Firstly, the recent unprecedented rises in the price of iron ore and metallurgical coal pose serious problems for the margins of steel companies and their cus
Secondly, the unilateral replacement of annual contracts by a three-month spot price for iron ore by the major mining companies will greatly increase the risk of price volatility in iron ore and scrap prices which will have a negative impact on the whole steel supply chain”.