European longs producers implement further hikes
Several European long steel producers are implementing or considering price increases of €20-50/tonne ($23.37-58.43/t) across rebar, sections and wire rod, driven by rising costs linked to the US-Iran conflict.
According to sources, ArcelorMittal is increasing its values by €50/t across its range of longs.
Despite the ceasefire in Iran, energy price volatility remains elevated and the outlook for costs remains highly uncertain. ArcelorMittal is said to be limiting the validity period of its quotes in response to the ongoing uncertainty around input costs.
Turkish HMS 80:20 prices are also rising sharply, causing scrap increases in several Western European countries. Last week, an increase of some €10/t also emerged in Germany. Strong export demand and high volumes of material leaving northern ports have prompted scrap suppliers to push through increases of up to €15/t compared to March settlement levels, with mills forced to pay the hikes given their substantial procurement needs this month.
The Tube and Wire trade show in Düsseldorf this week will be used as a focal point for announcements, with both producers and buyers telling Kallanish they are awaiting the event to assess market sentiment. While buyers confirm there is no panic buying at present, some apparent demand is resurfacing across most long products thanks to supply uncertainties linked the conflict.
One long products producer notes that scrap is not the only pressure. He also reports significantly higher logistics costs.
A southern European producer adds that price increases implemented in March have proved insufficient to cover the rising input costs. A Western European mill is said to be finalising the level of its next price increase, which is believed to be at least €35-40/t.
