ArcelorMittal hikes EU longs on costlier inputs: source

Sources in the European market report that ArcelorMittal has started implementing a €100/tonne ($113) increase on base prices of commodity-grade long products.

The move has been communicated to customers this week. It is triggered by further growth in energy and input costs. Energy prices have continued to increase during the last month, reaching a range of €250-400/MWh, over five times higher than average rates registered in the first half of 2021.

EU Emissions Trading System (ETS) carbon prices have also trebled beyond €80/t in recent weeks. Other input costs, such as for electrodes and ferroalloys, also remain on the rise.

ArcelorMittal’s sales team is also communicating that a further €100/t increase on base prices can therefore be expected in January.

The firm levied an energy surcharge of €50/t for long products in October. Kallanish understands this surcharge will remain in place but it is no longer enough to cover energy and input costs at mills.

The first-quarter-2022 demand outlook remains positive for Europe, especially for long products. Electric arc furnace-based mills across the continent have also started to implement hourly stoppages to avoid paying the higher rate of energy costs, and this could translate to lower availability of steel in the market going into 2022.

Emanuele Norsa Italy