ArcelorMittal is raising its long product prices by €25/tonne ($28.5/t) for commodity grade sections, rebar and wire rod, market sources tell Kallanish.
The current market remains difficult for producers, with the resumption of conflict in the Middle East pushing up gas, electricity and freight costs. Other long product mills in Europe, particularly for rebar, are also raising prices ahead of the August shutdown due to soaring costs.
Several sources describe the European long product market as quiet but expect a pickup in September with higher prices as activity resumes. One source expects this to be supported by the impact of the sharply reduced quota allocations on certain products such as wire rod and rebar, particularly for Eastern European countries accustomed to importing large volumes.
Scrap prices fell this month but are seen to have bottomed out. Many EU countries are now entering the summer holiday and maintenance shutdown period, with activity reduced and contracts being concluded for small tonnages only.
