June 17, 2008 / 4:54 PM / 11 years ago

Corus will hike UK flat-rolled steel prices

LONDON, June 17 (Reuters) - Europe’s second biggest steelmaker, Corus, will increase the basis prices for its flat-rolled products in the UK, the company said on Tuesday.

The price increases will be at least 150 pounds per tonne for hot rolled steel, 175 pounds per tonne for cold reduced steel and 200 pounds for hot dipped galvanised and aluminised steel, it said.

Steelmakers have raised their prices several times since the start of the year to survive through the sky-high costs of key steelmaking raw materials such as iron ore and coking coal. The Anglo-Dutch steelmaker, owned by India’s Tata (TISC.BO) Steel, said the price hikes followed price for European prices in May.

Distribution prices would also increase by 6 percent, the company said, due to a significant increase in fuel costs.

“At the same time, as the direct consequence of a series of unprecedented increases in raw material costs, Corus Strip Products is discussing with its customers the consequences of the extreme cost increases in relation to current annual contracts,” the company said in a statement.

Corus’ strip product division produces nearly 12 million tonnes of hot rolled, cold rolled and coated strip products at its main steelmaking sites at IJmuiden in the Netherlands and at Wales in the UK.

The company as a whole produces around 20 million tonnes of crude steel and has an annual revenue of above 11 billion pounds.

Reporting by Humeyra Pamuk; editing by Christopher Johnson

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