Celsa introduces price surcharge as rising costs squeeze EU steelmakers

Spanish steelmaker Celsa will introduce an extra charge of €9 ($10) per tonne on all of its products across Europe from the beginning of August, a company spokesman told Metal Bulletin on Thursday July 27.

The surcharge is to be introduced because of increased costs for ferro-alloys, electrodes and refractories, the company said in a letter to customers seen by Metal Bulletin.
“Until July 2017, we absorbed these additional costs without passing them through to our customers. Unfortunately, it is now apparent that this is not a short-term situation, and we envisage that this will continue through the rest of 2017 and for the whole of 2018,” Celsa said in the letter.
Celsa’s decision comes after Metal Bulletin heard from other European mills this month that rising production costs were squeezing margins and making price increases necessary.

“As well as [strengthening] markets, there is a very significant push from the cost side,” one...

Published

Lee Allen

July 27, 2017

18:48 GMT

London