Bekaert expects steelcord prices to rise further

ERJ staff report (DS)

Kortrijk, Belgium -- Bekaert has announced that prices of steel cord products will most likely increase further in the future. This is due to the continued strong demand for long products for the construction market in the BRIC countries and the restricted trade of steel.

The company sees further upwards cost pressures on iron ore and coking coal, needed to make steel. These cost increases are expected to take their full effect as of the start of the second quarter 2009, when most raw material contracts will have been negotiated. The current stabilization of steel prices is believed to be temporary.

Bekaert said, "Global demand for steel cord for tyre reinforcement remains good despite the slowdown of the economy, due to the combination of growth and increasing radialisation in emerging markets."