August 29, 2008

ArcelorMittal sees coking coal price up by 150 to 200%

Reuters quoted Mr LN Mittal CEO of ArcelorMittal as saying that the price of coking coal is expected to rise by 150% to 200%.

Mr Mittal told Reuters during a break in the company's investor day that "High steel prices are mainly driven by the costs energy pricing and the coal price, which is still to be decided in negotiations between the coal producers and the major customers.”

He added that "Negotiations are ongoing and the new benchmark price will be announced in a few weeks and then we will be able to pass it on to customers.”

Asked what size of increase in coal prices he was expecting, Mr Mittal said that 150% to 200%.