ArcelorMittal is implementing a coil price increase across Europe by €50/tonne ($57.1/t), according to multiple market sources.
The revised base price for hot rolled coil is said to be at €770/t base delivered, versus the previous €720/t, Kallanish notes. Cold rolled coil and hot-dip galvanised coil prices in new contracts are also being increased by €50/t to €880/t.
According to sources, the steelmaker has filled September order books and the new values are for October lead time. ArcelorMittal was not available for comment.
HRC transactions are taking place in the EU market at €700-720/t base delivered on average, amid slow market activity. However, a mill source in southern Europe says that since the new steel trade regime country quota allocations were published, order intake has increased.
The new regime is considered by coil buyers to be harsher than expected, with several million tonnes of duty-free imported coils erased. European buyers of flat steel products will be able to import a combined 9,607,775 tonnes of HRC, cold rolled coil and coated sheet annually.
HRC (categories 1A and 1B) accounts for the largest share at just over 5.2 million t/year, followed by metallic coated sheets at approximately 2.86mt across categories 4A and 4B, and cold rolled coil at 1.54mt. A buyer notes the new system cuts HRC imports by almost 80% (see Kallanish passim).
