Iron ore price hikes hit Gulf steel makers

摘要

Steel producers are facing cuts to their profit margins, with customers unwilling to accept the full cost of rising raw materials prices, according to industry executives. Iron ore costs have increased faster than expected this year. In early April, Brazilian iron ore producer Vale announced that the price of iron ore pellets, widely used as feedstock for steel mills in the Middle East, had risen by 86.7 per cent. It increased its prices after holding talks with four of the region's largest steel makers, including Qatar Steel and Sabic.