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...