ArcelorMittal increases prices for hot-rolled steel in the EU by €50/t

Global steelmaker ArcelorMittal has increased its supply of hot-rolled coils in Europe by €50 per tonne amid limited import opportunities and low supply of products in the domestic market. This is reported by ArgusMedia.

The company is currently offering hot-rolled coils at €800 per tonne to consumers in Northwest Europe, up €50 per tonne from previous prices. Hot-dip galvanized coils are offered at €920/t, which is also €50/t higher than the previous prices. Prior to the price increase, ArcelorMittal was offering HRC in the south of the EU at €740/t and in the north at €750/t.

The move comes as the company continues to negotiate contracts with automakers and other major steel consumers. At the same time, limited supply among domestic producers is driving up prices. Some buyers suggest that the lead time for orders at some EU plants is estimated at 2 months. In particular, ArcelorMittal has been experiencing production problems, and some of its plants have been affected by strikes over the past month.

Import options are also limited. As of January 8, 2024, 1.23 million tonnes of hot-rolled steel were pending customs clearance. At the same time, the quota for the relevant products is 923.6 thousand tons. Thus, importers will have to pay a significant duty.

The €800/t price will open the door to other exporters that have not been competitive in recent months, especially Turkey.

As GMK Center reported earlier, prices for hot-rolled steel in Western Europe increased by €10/t, or 1.5%, compared to the previous week, to €670-700/t Ex-Works for the period December 15-22, 2023. Since the beginning of December, product quotations have increased by €50/t. In Italy, prices for hot-rolled steel during this period reached €680-690/t Ex-Works, up €20/t from the previous week. Since the beginning of December, prices have risen by €80/t, or 13.1%.