The company took this step amid of reduced inventory levels in the supply chain in the market

Global steelmaker ArcelorMittal is increasing its offer for all commercial long products in Europe by €20 per tonne. The new price is effective immediately for all new orders, Kallanish reports, citing market sources.

The company has raised prices amid growing demand for replenishment of inventories, as their level in the supply chain is currently low. In addition, the steelmaker needs to restore margins.

Various plants in Italy have considered raising prices to improve margins. Suppliers of rebar, wire rod and commercial bar have already raised or are planning to raise prices by €20/t. However, demand for long products remains significantly depressed, and buyers doubt that the price increase will last.

In early April this year, global rebar prices declined in most major regions. The main negative factor remains unfavorable conditions in the Chinese steel market and weak demand. At the end of March, prices in Northern Europe fell by 1.5% m/m, and in Italy – by 5%. At the same time, as of April 12, Italian quotations for these products recovered to the previous level of €540-570 per tonne.

As GMK Center reported earlier, CMC Poland (a division of the US Commercial Metals Company) expects demand for long products to improve in the country. This will be driven by improved economic data and public investment.