ArcelorMittal is expected to seek a 50% increase in tinplate prices in its 2009 contract negotiations with the packaging industry, company sources told Metal Bulletin. A surcharge of EURO 160 per tonne on annual contracts, which was announced to ArcelorMittal customers in May and implemented throughout the second and third quarters of this year, will be incorporated into this increase.

    The proposed increases reflect sharp rises in steel making raw material costs and high prices and tight availability of hot rolled coil, which have squeezed tinplate margins. The group is also reported to be seeking to move the annual contract period with the packaging industry to April through March, so that pricing can be aligned better with raw material contract prices.