October 07, 2008

ArcelorMittal plans surcharge for US steel customers

Citing high raw materials costs, the world's largest steel producer, ArcelorMittal, sent a letter to US auto makers and other US contract customers saying that it would apply a rare USD 250 a tonne surcharge to the price negotiated in existing contracts, according to people who received the letter.

Contract customers, including Ford Motor Co and General Motors Corp may have no immediate option but to pay up because of the tight steel market world wide. Moreover, other steelmakers are likely to increase prices or add surcharges for the same reason.