ArcelorMittal is raising prices for long products in Europe by €25 per tonne

ArcelorMittal, Europe’s largest steel producer, has announced a price increase for long products. The cost of sections, rebar and wire rod will rise by €25 per tonne ($28.5/t). This was reported by Kallanish.

The current market situation remains challenging for European steelmakers. The main factor putting pressure on production costs has been the escalation of the conflict in the Middle East, which has caused a surge in the prices of natural gas, electricity and logistics. Following the market leader’s lead, other European producers of long products are also revising their prices in an attempt to offset costs ahead of scheduled plant shutdowns in August.

At present, the long products market in Europe remains sluggish due to the start of the summer holiday season and scheduled maintenance. Deals are being concluded mainly for small volumes. Scrap metal prices have fallen this month, but analysts note that they have already bottomed out.

Experts expect business activity to pick up and prices to rise again in September. A further driver for the market will be a significant reduction in import quotas for wire rod and reinforcing bars, which will be felt most acutely by Eastern European countries, which traditionally rely on substantial imports of these products.

As reported by GMK Center, ArcelorMittal had already raised prices for flat steel products for the European market in July. Price increases in northern Europe will amount to €20 per tonne, whilst in the south of the continent the rise will be more substantial — €50 per tonne. Tougher market conditions in southern Europe, particularly in Spain, have enabled ArcelorMittal to implement more radical price rises there.

Courtesy : https://gmk.center/