July 6 (Bloomberg) -- Some automakers are refusing to pay surcharges on steel contracts they agreed to, the Wall Street Journal reported, citing Aditya Mittal, chief financial officer of ArcelorMittal.

Some of these automakers have threatened to challenge the surcharges in court, the Journal said, citing people familiar with the matter. The newspaper didn't identify any companies refusing to pay.

Steel companies are negotiating with Ford Motor Co., General Motor Corp. and Toyota Motor Corp. now over the price of future contracts, the Journal said.

Chinese, Russian and Brazilian demand has driven up the price of steel at the same time U.S. automakers are struggling to sell vehicles because of soaring energy costs, the Journal said.

To contact the reporter on this story: Joseph Galante in San Francisco at jgalante3@bloomberg.net

Last Updated: July 6, 2008 18:24 EDT