The recent wave of price increase announcements for longs products across Europe is translating into modest transaction price hikes. However, buyers are widely sceptical about the scope for further rises under current market conditions.
Market sources across western and southern Europe report that, while demand is present, January has been sluggish, largely because many buyers implemented purchases in December ahead of year-end, Kallanish hears.
To compensate for weak domestic demand, European producers are increasingly targeting export sales within Europe. However, logistics constraints are becoming a growing challenge. “Logistics have become extremely expensive,” one longs mill confirms. Barge transport, a cost-effective option, is being disrupted this month by low water levels in Switzerland, Germany and France following a prolonged lack of rainfall. Vessel availability is also tight and some deliveries are being delayed.
Another mill source notes that shipping material to another country now costs almost twice as much as domestic truck transport. Despite this, export activity remains necessary to support order books and avoid production slowdowns, which would otherwise push up fixed costs at a time of high production cost levels.
According to a large European longs producer, demand is broadly stable and in line with what it describes as the “new normal” for Europe. January is traditionally a slow month and the weakness is seen as seasonal. Construction activity is expected to pick up in the coming weeks, having been further constrained in January by adverse weather conditions in several parts of Europe.
Sources say ArcelorMittal raised prices in January by an average of €25-30/tonne ($29.73-35.67/t) versus December across all long products. This is up by around €50/t compared with the lows recorded in October 2025.
While price increases are being implemented gradually, several mill sources stress that January’s upticks remain insufficient to offset rising costs. Electricity prices continue to climb, scrap values rose sharply in January and logistics costs remain high, all of which are weighing heavily on margins. Producers therefore appear determined to continue pushing for higher prices, arguing that current selling levels are close to production costs.
One producer adds that demand is being supported by some eastern European markets, while Spain is currently showing the strongest consumption in western Europe.
Author: Natalia Capra France
