In middle November, European steelmakers and automakers will start negotiations for 2006 contract and it is expected to be tough talks. With many long term contracts up for renewal early next year, sharp price increases are expected due to the rising raw prices. A British spokeswoman from a German steel producer with high exposure to the automotive business said “Talks are going to be tough this year, and our customer saw a steep increase on their contract prices from 2003 to 2004.” Contract prices in 2005 increased by €180 and prices are expected to fall by around €20 for 2006. However, Arcelor CEO Guy Dolle said that he expects annual contract prices to be flat for 2006. “They had huge increase last year, we will ask for a 10 percent price increase for 1.5 million to 1.7 million tons of the business.” (Nov. 4)