ArcelorMittal raises prices for long products in Europe by €30/t

ArcelorMittal, one of Europe’s leading steel producers, has announced a €30/t ($34/t) price increase for all long products in the European market

According to market participants, the decision is due to the inability to maintain current price levels due to high production and raw material costs, including scrap metal, as well as reduced capacity utilization.

This year, the company, like other producers in southern and Northern Europe, has already been forced to cut production at several plants due to difficult market conditions. These measures have helped to partially balance the market, where demand remains weak.

Sources at the plants confirm that long product prices are currently at a level that does not cover producers’ costs. The future implementation of the CBAM mechanism is expected to support further price growth. Some other European producers are also considering raising their prices, while Italian rebar suppliers announced price increases in early August ahead of scheduled maintenance shutdowns.

Northern Europe is seeing a gradual recovery in activity this week after the summer holidays, with sellers reporting an increase in inquiries for long products. At the same time, prices for imported Turkish scrap remain at around $340/t CFR, which is in line with January levels. At the same time, the cost of long products is still about €40/t lower than in January, which significantly affects the profitability of mills.

ArcelorMittal’s price increase applies to the main categories of long products, including beams, wire rod, and rebar.

In early August, the company raised its base price for hot-rolled coil to €610/t delivered for fourth-quarter shipments. This is the second price increase in a short period of time – at the end of July, the company set the price at €590/t, which is currently also applied in Spain and Italy.