Europe’s biggest steelmaker ArcelorMittal has slapped a surcharge on some products due to surging power prices, according to a person familiar with the matter.
Long steel products sold by ArcelorMittal in Europe will be subject to a €50 ($58) a ton surcharge, said the person, who asked not to be named as the matter is private. It follows a similar move last week by UK-based British steel, which said it’s hiked prices by £30 ($41) a ton.
A shortage of natural gas has caused power prices to soar across Europe, increasing costs for energy-intensive industries like steel. Mills that rely on electric-arc furnaces have been worst affected as power accounts for a greater proportion of their costs. High steel prices and hedging have eased the pain for the industry, which typically operates on thin margins.
The ArcelorMittal surcharge was first reported by Argus Media. Long steel products are typically used in construction, which is already being hit by rising costs for other raw materials.