European producers raise prices for long products

Spanish long products manufacturer Celsa is raising prices in Europe for all of its products by €30 per tonne due to high processing costs and rising raw material prices. This was reported by Kallanish with a message to the company’s European customers.

In particular, Celsa rebar quotations in Central Europe have risen to €640/t with delivery.

Market sources also note price increases from other large and small European producers of long products. Although consumption remains weak, prices are expected to continue to rise and remain high in the first months of 2024.

According to market participants, Celsa and all other European long products mills are considering further price increases if scrap prices continue to rise. Prices for this raw material in Europe are rising due to strong export demand and low availability, and are unlikely to decline in the short to medium term.

Last week, a group of Celsa’s creditors finalized the takeover of the Spanish steelmaker. According to Bloomberg, the new owners include SVP, Deutsche Bank, Anchorage, and Sculptor. The new owners pledged to start the process of selling a stake of up to 20% to an industrial partner operating in Spain within six months of gaining control.

As GMK Center reported earlier, global rebar prices showed a slight increase in major markets at the end of October. In particular, in China, they were supported by economic incentives from the authorities. In the US, rebar prices have been stable since the end of September as construction activity slows down due to seasonal factors.