ArcelorMittal to raise prices for long products in the EU by €30/t

ArcelorMittal, one of the largest steel producers in the world, announced its intention to raise prices for the entire segment of long products in Europe by €30/t. Kallanish reports about it referring to market sources.

The new pricing policy will apply to July and August orders.

The corresponding decision was made amid an almost continuous negative adjustment in rolled steel prices since April 2022. Steelmakers across Europe have noted in recent weeks that long product prices are now at unsustainable levels. The corresponding situation is forcing some companies to reduce production at their factories.

According to market participants, after such a long negative trend for prices for long products in Europe, it is fair to expect that the bottom has already been reached. The current level of prices for rebar in the EU is below €600/t and unprofitable at current prices for raw materials and energy. At the same time, the price is the lowest since the first quarter of 2021. The level of scrap prices also fell to lows since January-March 2021, but other costs, including energy resources, are significantly higher than during this period.

According to IREPAS forecasts, the unfavorable situation in the construction sector at the global level and fiscal obstacles will not allow to support the prices of graded rolled products in the current year. Regions with the potential for a significant increase in demand are likely to show this growth no earlier than 2024. At the same time, consumption in countries with large economies is affected by macroeconomic conditions.

As GMK Cener reported earlier, the countries of the European Union in January-May 2023 reduced steel production by 10.4% compared to the same period in 2022 – to 56 million tons. In May, EU steelmakers produced 11.6 million tons of steel, which is 11.2% less y/y.