Liberty Ostrava increases steel prices by €20/t

UK-based steelmaker Liberty Steel has boosted offers by €20/t ($22.46/t) at its recently acquired Ostrava steelworks in the Czech Republic to offset raw material and energy cost increases, as it implements a 20pc production cut.

The increase will be effective immediately to all new bookings and apply across all products. The temporary output reductions will be achieved through rate decreases rather than by idling any production facilities.

"The price of CO2 allowances has increased by 264pc over the past one and half years, iron ore prices have risen by 65pc since the beginning of the year, the imports of cheap steel have grown by 13pc and reached a quarter of the total EU steel consumption," Liberty Ostrava chief executive Ashok Patil said.

Several European producers have enforced production cuts to address weak demand, increased imports, and unfavourable economic conditions that have squeezed steel margins and put many mills in loss-making territory. Steelmakers across Europe raised offers in May-June, and although some achieved slight increases in prices, the momentum has dwindled.

Liberty Steel acquired the Ostrava steelworks from ArcelorMittal, finalising the deal on 1 July. The European Commission asked the latter to divest the asset along with others in Europe in order to clear its acquisition of Ilva in Italy. Liberty Ostrava has a production capacity of 3.6mn t/yr, but produces just 2.2mn t/yr at present.

The Ostrava operations comprise three coke oven batteries, a sinter plant, four blast furnaces, four tandem furnaces, three continuous casters, a steckel mill, a wire rod mill, and two section rolling mills. It produces hot-rolled coils and sheets, round and flat bars, sections, wire rod, rebar, and a number of further processed steel products.

source: Argus Media