ArcelorMittal increases supply levels for hot-rolled coils in Europe

ArcelorMittal informs customers of its intention to increase the price level for hot rolled coil (HRC) for January orders to €680/t ex-works Northern Europe. Kallanish reports about it with the reference to market sources.

The new offer levels represent an increase of approximately €50/t compared to the latest deal levels. The increase may be due to the fact that sales for the fourth quarter have already closed.

European market players take a cautious position, but expected the level of supply to increase. Imported options, despite lower prices, look less competitive than in September-October due to long delivery times.

According to the latest data, in 8 months of 2023, HRC imports to Europe increased by 13.8% year-on-year – up to 6.1 million tons.

European integrated steel plants in Northern Europe, reports Fastmarkets, are becoming increasingly assertive and are seeking to increase offer prices for January coil by €30-50/t. They cite rising costs and limited product availability due to production cuts.

Offers for January deliveries of HRC from factories in the region were fixed at €660-680/t ex-works. Buyer prices were €620-630/t. Even lower offers – €600-610/t – were announced for deliveries in December. However, according to sources, factories were reluctant to agree to lower prices.

Shoppers are returning to the market to restock but remain cautious about reserving products. They are not confident in the sustainability of the price trend and cite worsening demand from end consumers and poor forecasts for 2024.

As GMK Center reported earlier, despite the weak state of the market, European steelmakers are preparing for moderate increase prices for hot-rolled steel by reducing capacity. The market may soon face insufficient supply, which will support rising prices. Given the exhausted import quotas, European suppliers will become the main source of products on the market in November-December.

Also, the US market expects further growth prices for hot-rolled steel. HRC supply is forecast to remain constrained until the end of 2023. Domestic coil prices in the United States rose to $850-$900 per short ton in late October and early November.