ArcelorMittal raises prices for long products across Europe

The decision is motivated by rising production costs and the need to restore profitability

Global steelmaker ArcelorMittal announces a price increase for long products across Europe. The decision is motivated by rising production costs and the need to restore profitability. This was reported by Kallanish.

The company is raising prices for all long products, including rebar, beams and wire rod by €20 per tonne compared to June levels, amid rising electricity costs in Europe and ferroalloy prices. Electricity prices increased by 25% in June compared to May, pushing up production costs, a trend that is expected to continue in July.

Demand for steel is at a favorable level and producers in Europe are seeing an improvement in apparent consumption in July. In addition, consumers are trying to fulfill inventory requirements ahead of the maintenance season in August.

Global rebar prices have remained stable in most major regions since the beginning of July. The stagnation in the market is a result of a prolonged slowdown in steel demand. At the same time, the Chinese market is experiencing negative price dynamics amid changes in national standards.

In the European market, rebar prices have fallen slightly since the beginning of July. In Northern Europe, quotations for the period from June 28 to July 19 fell by €10 per tonne to €620-630 per tonne Ex-Works. In Italy, the drop in prices was more significant – by €30/t to €580-600/t Ex-Works.

As GMK Center reported earlier, in the first half of 2024, steel production in the EU decreased by 0.1% y/y – to 56.1 million tons. In June, the figure increased by 1.8% y/y – to 11.7 million tons. In general, global steel production for 6 months remained at the level of January-June 2023 – 954.6 million tons.