ArcelorMittal is raising prices for rolled steel in Europe by €50 per tonne

The new prices will apply to contracts with a delivery date in October

ArcelorMittal, Europe’s largest steel producer, is raising prices for coiled steel across Europe by €50 per tonne, according to Kallanish.

The updated base price for hot-rolled coil (HRC) now stands at €770 per tonne on a delivered basis, compared with the previous level of €720 per tonne. Prices for cold-rolled coil (CRC) and hot-dip galvanised coil (HDG) in new contracts have also risen by €50, reaching €880 per tonne.

Insiders note that the steel giant has already fully finalised its order book for September, so the new prices will apply to contracts with delivery dates in October.

At present, actual transactions for the sale and purchase of hot-rolled steel on the EU market are still being concluded at an average of €700–720 per tonne on a delivered basis, due to generally low market activity. However, a source at one of the steelworks in Southern Europe reported that, following the publication of the new steel trade rules and the allocation of country-specific quotas, the volume of incoming orders has risen significantly.

Market participants regard the new trade regime as considerably stricter than expected. The introduction of strict limits has effectively removed several million tonnes of duty-free imported steel from the European market. Under the new rules, European consumers of flat steel products will be able to import a total of no more than 9.6 million tonnes of hot-rolled, cold-rolled and galvanised coils per year.

Hot-rolled steel accounts for the largest share of permitted imports—just over 5.2 million tonnes per year. The quota for coated steel stands at around 2.9 million tonnes, whilst that for cold-rolled coils is 1.54 million tonnes. According to one buyer’s estimates, the updated system reduces the scope for importing hot-rolled steel into the EU by almost 80 per cent.

As reported by GMK Center, US steel producer Nucor left its spot price (CSP) for hot-rolled coils unchanged at the end of June compared with the previous week. The current offer remains at $1,130 per short tonne.