ArcelorMittal is raising its long product prices by a further €20/tonne ($23.3/t) for commodity grade sections, rebar and wire rod, market sources tell Kallanish.
This follows the previous increase implemented in July of €25/t, bringing the total increase to €45/t.
The market environment remains challenging for producers, with the instability of the Middle East conflict pushing up gas and electricity costs, which are critical for electric arc furnace steelmakers.
One source warns that electricity costs have soared beyond affordable levels, leaving producers with two options: pass on the increases or implement heavy production cuts across Europe in the coming months.
Several sources describe the European long product market as extremely quiet, with the holiday period and heatwaves keeping activity at a standstill. “The main issue is that in terms of costs there is no stability. Scrap is the only cost that is stable, but energy continues to soar, both gas and electricity, compared to before the summer. This conflict seems to have no conclusion, and it’s having a huge impact on all EAF producers,” a source says.
Another says that increases implemented before the summer are not enough to cover all costs and believes several long producers will implement further hikes in the coming weeks hoping that sales activity will pick up in September.
Wire rod sales remain slow and the market challenging in both south and northern Europe as well as rebar, a segment plagued by uncertainty.
European scrap prices have remained mostly stable in August, Kallanish notes.
