Market sources say ArcelorMittal is announcing higher prices for long products across Europe. The move is driven by the high cost of production and the need to recover margins, Kallanish notes.
The steelmaker is reported to be offering €30/tonne ($32) above its May quotes for all commodity grade longs. “Capacities have been reduced because of the lower consumption across Europe, but prices are now being strongly impacted by the high cost of energy and raw materials, such as scrap which remains expensive,” a source comments. He adds that demand is not as high as it was in recent years, but is still “acceptable”.
The northern and southern European longs markets have been hit by lower consumption and high production costs. According to a mill source, southern European countries are performing better than those in the north and west, where sales are weak and margins low. Last month, all longs producers in Germany, France, Italy and Spain pushed up values with mixed results. This month, Italian rebar makers are again attempting a price increase (see separate article).
Natalia Capra France
