European market participants report that hot rolled coil offers are increasing further this week amid the Ukraine-war driven cost escalation.
ArcelorMittal is reported by multiple sources to have lifted new offers for HRC to €1,300/tonne ($1,432) ex-works base for all its European clients. Only last week the company announced to customers an increase in offers to €1,150/t ex-works base for Europe.
This week’s move was widely anticipated by market sources and is now being followed by most European suppliers. A further price hike has not been ruled out as soon as next week, as the war in Ukraine drags on and the market continues to suffer from disrupted feedstock supply and increasing raw materials and input costs, Kallanish notes.
The new €1,300/t ex-works base target level is above the all-time record northern European HRC transaction price registered by Kallanish in August 2021, which was at slightly above €1,230/t ex-works northern Europe.
Emanuele Norsa Italy
