The new offer levels are €40/t higher than the last available quotes
ArcelorMittal Corporation, one of the largest steel producers in the world, announces price increases for the entire segment of rolled steel in Europe. In this way, the company is trying to partially cover the loss of margins caused by the summer price increase for scrap and energy carriers. Kallanish reports about it with the reference to market sources.
The new offer levels are reported to be €40/t higher than the last available quotes, covering the entire rebar segment, as well as new monthly and quarterly contracts.
At the same time, European demand for long rolled steel remains relatively low. However, steel producers are optimistic because they believe that the supply chain has been depleted. Market sources note that low demand for these products has been observed for several quarters in a row, a similar trend has not been seen since the crisis of 2008-2009. According to Kallanish, rebar prices in Northern Europe and Italy have remained relatively stable since early June. As of September 1, 2023, they were €570-620/t and €610-630/t, respectively.
As GMK Center reported earlier, ArcelorMittal in July announced its intentions to raise prices for graded steel in the EU at €30/t, the new pricing policy was to apply to July and August orders. The corresponding decision was made amid almost continuous negative adjustment of long steel prices from April 2022.
Also, IREPAS notes, that producers of rolled products are pressured by the slowdown of the global market, and the demand for rebar and wire rod remains low. In addition, there is fierce competition from new exporters – Algeria, Egypt, UAE and Saudi Arabia. The European market for these products slowed down due to the summer holiday season, and excess capacity in the EU prevented companies from raising prices.