2008
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Sandown Wireless - New 5/15/2008 Price Sheet
2008 Price Sheet in Adobe Acrobat Format
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“Prices reflected in 2008 quotations are based on current steel cost and may or
may not be appropriate at time of order placement. Based on current market
volatility please confirm pricing at time of ordering.” See below.
In
continuing coverage from yesterday's briefing, the
Wall Street Journal
(4/8, B3, Matthews) reports that "[t]he world's steelmakers, already facing more
than 65 percent increases in iron-ore prices this year, are expected to pay
significantly more for a special coal used to make steel, as mining companies
pursue hefty price increases for 2008." According to news reports, "South
Korea's Posco, the world's fourth-largest steelmaker by output" has "agreed to
pay about $300 a metric ton for coking coal compared with the current contract
price of about $100 a metric ton." Analysts expect this price "to become an
early benchmark for other continuing negotiations between steelmakers and mining
companies over contract settlement prices for coking coal this year." The
Journal notes, "The increase for coking coal signals continued profit momentum
for mining companies holding sway over steelmakers in China, India, Europe, and,
to a lesser extent," North America, "where steelmakers have more of their own
mines. Standing to benefit most are big miners such as BHP Billiton, Rio Tinto,
and Xstrata PLC, which are the largest sources of those raw materials."
Because of the increasing raw material prices, the
Financial Times
(4/8, Blas) expects that "[s]teel prices are poised to rise further." According
to analysts, "steel prices might need to rise up to 20 percent to cover the jump
in coking coal cost." Steelmakers had already "raised the prices of their
products 10-20 percent in February and March."
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