It’s not only rising fuel price which is giving nightmares to the carmakers, prices of steel have also given the auto industry a tough time. Where gas has crossed $4 per gallon, steel prices have doubled in a year from 600 to 1,200 euros or $950-$1900 per ton.
ArcelorMittal, world’s biggest steel maker have already cleared their intentions in this respect, they want to raise prices for car makers by about 60 percent in gradual steps. Group supplies aout 23 percent of steel used by German carmakers, and its market share across Europe reaches 50 per cent.
The reasons for the sharp incline in prices includes both the increased cost of energy for steel makers and higher demand for the strong stuff coming from rapid growth in countries like China and India.
ArcelorMittal, world’s biggest steel maker have already cleared their intentions in this respect, they want to raise prices for car makers by about 60 percent in gradual steps. Group supplies aout 23 percent of steel used by German carmakers, and its market share across Europe reaches 50 per cent.
The reasons for the sharp incline in prices includes both the increased cost of energy for steel makers and higher demand for the strong stuff coming from rapid growth in countries like China and India.
As a result of increasing costs, suppliers are passing these costs on to carmakers as a result most of the manufacturers have passed on this increase in their input cost to their consumers and others are likely to follow shortly.
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