ArcelorMittal has increased its offer prices for steel coil in Europe by about Eur20/mt ($22/mt) and some other mills have also increased theirs, supported by a combination of full order books and lack of competitive import offers, market sources said Feb. 14.
New offers from ArcelorMittal were said to be at Eur820/mt delivered for hot-rolled coil and Eur940/mt delivered for hot-dipped galvanized coil in Germany.
“Import offers are limited in numbers, and prices we get are for long lead times,” a European service center said. “Even if someone decides to buy with additional transportation costs by land the price would be similar to those available from European mills. So, more people turn to domestic mills, and it helps the price rise.”
May-June rolling material has been available in Germany and second quarter production in the rest of Europe, sources said.
Platts assessed domestic prices for hot-rolled coil in Northwest Europe at Eur765/mt ex-works Ruhr on Feb. 13.
Prices in Central Europe have been at similar levels on delivery basis, sources said.
An Italian source said offers from ArcelorMittal have moved up to Eur800/mt delivered Italy for HRC.
Some other European steelmakers have also increased offers to the similar rates, according to market sources. An Italian producer said they have already been offering HDG at about Eur940/mt delivered over the past couple of weeks.
Demand
Demand has remained stable and was expected to continue little changed in the near term, according to market sources.
As a result, the price increase is likely to be gradually accepted by the European buyers.
“I think this approach of the mills when they increase prices by about Eur20/mt over the latest deals is smart,” an Italian service center said. “The increase is reasonable. It is both unavoidable in the current market, but it is also manageable.”
— Maria Tanatar
