U.S. Steel Košice to increase prices next year

Prices should go up by up to €70 per tonne in the first half of 2020.

U.S. Steel Košice will increase prices for its buyers in 2020U.S. Steel Košice will increase prices for its buyers in 2020(Source: TASR)

The Košice plant of the American steelworks U.S. Steel (USSK) has confirmed that it will raise prices for its buyers in 2020, as initially reported by the Argus Media on December 3.

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“We have decided to raise prices because of the difficult situation in the steel industry,” USSK spokesperson Ján Bača told the SITA newswire last week, on December 6.

He did not comment on how much the prices would increase. Based on letters sent by the Slovak steelmaker to buyers, prices would increase by €60 to €70/t in the first six months of 2020, starting to rise at the rate of €25/t as soon as 2020 begins, Argus Media claimed.

EU steel mills’ hardship

Bača went on to say that all the steelworks across the European Union are finding themselves in a difficult situation because of the high prices of natural resources and high costs spent on energy and CO2.

“The prices of our products must reflect the increase in these costs,” he told SITA.

According to the September report submitted by the U.S. Steel corporation to the US Securities and Exchange Commission, the average realised prices of its European branch in the third quarter of 2019 reached €590/t.

Related articleU.S. Steel Košice to axe 2,500 jobs Read more 

Lay-offs to go on

The Slovak mill expects a significant drop in the number of deliveries this year. USSK will continue reducing the number of employees in Košice and its subsidiaries by 2,500 people before 2021.

In 2019, Košice-based steelworks shortened the working week for its employees to four days. The measure is in operation until January of next year.

USSK shut down one of its furnaces in June and will not relaunch it for now, SITA wrote.

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