German steel and engineering group ThyssenKrupp AG said on it would increase flat carbon steel prices by 20 euros per ton from the beginning of next year in a bid to counter rising cost pressure.
"This price increase is urgently needed to offset increasing cost pressure," the world's number four flat carbon steel producer said in a statement. It said the cost of obtaining ore and blast-furnace coke had risen significantly in the course of this year, with a sharp rise in sea freight rates also putting on pressure, and said it anticipated a further rise in raw material costs in 2004.
The group, which also supplies car parts and makes elevators and cruise liners, in August posted broadly flat profits at its core steel unit for its fiscal third quarter. It said at the time that it was no longer running all of its factories at full capacity as sagging demand and rising imports had increased supply and pricing pressure in Germany and Europe.
Carbon steel accounts for the bulk of Thyssen's steel production. (Reuters)
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