ArcelorMittal is pushing up prices by €20/tonne ($23.73/t) for new contracts across the commodity grades of its long products portfolio, including rebar, sections and wire rod, sources in the market tell Kallanish.
The move follows a €20/t rise implemented in January and brings total increases to around €70/t compared with the lowest levels recorded last October.
The price hike is said to be driven by further production cost increases pushing several other longs producers in different countries to also implement increases of €20-30/t, another sections producer confirms.
The market leader’s hike is mostly driven by the €40/t average rise in scrap prices in Europe compared to the levels seen in the fourth quarter, alongside elevated gas and electricity prices. Energy costs have increased this winter by between 35% and 80% depending on each European country. The high production costs are further squeezing producer margins and reinforcing the need to restore sustainable pricing.
With the construction high season approaching, sources expect activity to improve. Some distributors report early signs of restocking, although overall demand remains uncertain, Kallanish notes.
