Salzgitter AG Germany’s second largest steel group increased its revenues significantly by raising prices for its core products. “All of our contracts with customers have been renegotiated” at the higher prices, said Chief Financial Officer Heinz Jörg Fuhrmann of the Börsen-Zeitung.
This means that almost all of Salzgitter’s products have achieved a significant revenue increase especially for the second and third quarters. This is true for flat steel and plate product lines.
The MDAX-listed company also had to renegotiate its price structures with its iron ore suppliers who were responsive the changing market conditions. Because the system of annual contracts was changed to quarterly contracts Salzitter AG changed it its price system.
Across the steel and tube manufacturers group second quarter sales were 2.1 billion euros. Salzgitter will present data on the past third quarter on 12 November.