ArcelorMittal is increasing its prices for long products throughout Europe by €25/tonne ($25.6/t), Kallanish hears from market sources.
The decision was driven by rising energy costs, which are making current longs prices unsustainable. The steelmaker is implementing a price hike across all commodity grade long products, which encompasses rebar, mesh, sections, and both low- and high-carbon wire rod. This is effective immediately for all new orders.
Energy costs are projected to continue rising, significantly affecting the profitability of European mills. Energy tariff increases have been substantial since October 2024. In Germany, power prices have surged by up to 41% compared to October, while gas prices across Europe saw an average increase of 22%. Gas and electricity forward prices are also high. According to the Dutch TTF gas index, prices went up from €40/MWh on 18 October to €48.2/MWh on 13 January.
In numerous European markets, several steelmakers are raising prices of wire rod, sections, and rebar. The market, however, remains sluggish, with transactions primarily occurring only for low tonnages. Market participants are being prudent in light of the uncertain conditions in the construction industry, especially within France and Germany.
Despite the general market weakness, a large northern EU steelmaker sees “surprisingly improved demand” for some longs, particularly sections. This is alongside an increase in enquiries for rebar.
Natalia Capra France