ArcelorMittal SA To Raise Prices, Sources Steel For Newcastle Loss

ArcelorMittal South Africa Ltd. (ACL.JO) said Friday that it will raise steel prices from October and that it has secured additional supply from other company mills worldwide following the accident in Newcastle in August.

Prices for long steel products will increase by between 300 rand ($43) a metric ton and ZAR600 a ton, depending on the product and grade, from Oct. 1.

The steelmaker, a unit of largest steelmaker ArcelorMittal (MT), said it had secured about 240,000 tons of steel from external sources, mostly from ArcelorMittal mills in other parts of the world.

The steel will be supplied to local South African markets from the middle of October, the group said.

In August, the company said a part of its Newcastle facility collapsed and it would take three months to fix the blast furnace. The company then estimated it would lead to the loss of about 400,000 tons of steel.

-By Devon Maylie, Dow Jones Newswires; [phone]; [e-mail]