ArcelorMittal Europe – Flat Products says new orders and contracts will be assessed in the coming days after markets were thrown into turmoil following Russia’s invasion of Ukraine last Thursday.
Kallanish learned from informed market sources on Friday that the division of ArcelorMittal Europe has told customers it has stopped offering product as a result of the war in Ukraine.
“Given the current market volatility caused by the crisis in Ukraine, ArcelorMittal Europe – Flat Products is focussing on fulfilling existing orders,” the company told Kallanish on Friday, before adding new orders will be assessed once there is more clarity.
Following the suspension of ferrous trade in the CIS region precipitated by Russia’s invasion, questions have arisen over the impact of steelmaking raw materials and flat steel supply into Europe. Many of Europe’s blast furnace-based producers depend on Ukrainian iron ore and coking coal, while Russian and Ukrainian flat steel has a significant share in the EU import market. Potential shortages will likely drive up prices and lead to EU buyers scrambling to find alternative suppliers.
The Kallanish northern European hot rolled coil price index jumped for a third consecutive week to €920-980/tonne ($1,024-1,091) ex-works on Friday, after diving throughout January.
Adam Smith Germany
