Strong demand and ongoing pressure from rising raw material and billet prices have led to increasing rebar and wire rod prices in Asia and Middle East. Due to continuing robust steel market fundamentals, ArcelorMittal announces a further price increase of $ 30/ton for long steel products for all new orders as of Jan 1st 2008 out of Black Sea for Turkey, Mediterranean, Middle East & North Africa (MENA) destinations.
This price increase comes as a result of ongoing strength in the macroeconomic environment in MENA, CIS and emerging Asia regions. Demand for steel products remains strong, with financial market jitters limited to mature Western markets. Billet prices into the region have risen over the past few weeks on strong demand and shifting trade flows.
The strength of the macroeconomic environment in MENA is supported by continuing high oil prices. The construction sector is particularly robust with a significant number of projects under construction and 2008 growth expected at a high rate similar to that of 2007.
Narendra Chaudhary, CEO of ArcelorMittal Krivy Riy, Ukraine, said: "The strong demand is untypical for this time of the year but clearly indicates that we are looking to a very healthy year 2008. We believe that trade flows are on the way to change and Ukraine will benefit from this."
ArcelorMittal is the world's number one steel company, with 320,000 employees in more than 60 countries. The company brings together the world's number one and number two steel companies, Arcelor and Mittal Steel. ArcelorMittal is the leader in all major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 27 European, Asian, African and American countries exposes the company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets. ArcelorMittal key pro forma financials for 2006 show combined revenues of USD 88.6 billions, with a crude steel production of 118 million tonnes, representing around 10 per cent of world steel output. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MTP), Brussels (MTBL), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
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