ArcelorMittal is announcing increased prices for long products throughout Europe, according to market sources. The decision has been motivated by rising production costs and the need to regain profitability, Kallanish hears.
The steelmaker is increasing its prices for all commodity grade longs, such as rebar, beams, and wire rod, by €20/tonne ($21) above its June quotes, sources note. According to one, the rise in costs of electricity across Europe and of ferroalloys have significantly affected production cost.
Demand is at a favourable level and sellers in Europe have observed a resurgence in apparent demand in July, he adds. Customers are fulfilling their restocking requirements ahead of the August mill shutdowns in various EU countries.
The increase will take effect immediately. EU Electricity prices saw a significant 25% increase from May to June, thereby pushing up production costs, and it is anticipated that this upward trend will continue into July.
Natalia Capra France