EUROFER alarmed by 200 % increase of coking coal prices
The massive increase of coking coal prices, to approximately 300 US Dollars per tonne from 98 US Dollars per tonne coming together with the 65% increase in iron ore prices, represents a further huge rise in raw material costs for the steel industry.
“Increases of this magnitude will affect not only the steel industry but also our customers as the additional costs must be passes on in the form of higher finished product prices. This will impact the European economy as a whole and comes at a particularly difficult time in terms of operating conditions for industry which faces additional challenges in terms of credit availability and the rising Euro in the context of the global credit crunch and the slowing economy”, comments EUROFER Director General Gordon Moffat.
“This further massive rise in costs brings into perspective the crucial issue of raw material supply as a key factor in the competitiveness of European industry and provides further evidence – if more were needed - of the inappropriateness of the proposed merger between BHP Billiton and Rio Tinto.
It highlights as never before the need for the European Commission to oppose this proposed merger”, Moffat says.
Represented by EUROFER, the European steel industry is the world leader in its sector with a turnover of EUR 140 billion and direct employment of 370 thousand people, producing 200 million tons of steel per year.
Contact
Gordon Moffat, Director General +32 2 738 79 26 (g.moffat@eurofer.be)
Axel Eggert, Director Public Affairs +32 2 738 79 34 (a.eggert@eurofer.be)