NEWSBREAK: ArcelorMittal Europe plans yet another flat steel price rise
ArcelorMittal has told some customers that it will be adding another €50 ($73) per tonne to its coil product offer prices in Europe this week, sources told Fastmarkets on Wednesday May 19.
New offers for hot-rolled coil will reach €1,150 per tonne ex-works, with cold-rolled and hot-dipped galvanizing coil offers moving up to €1,300 per tonne ex-works.
The hikes will be the seventh consecutive week that ArcelorMittal Europe has increased its coil offer prices.
Although the previous targeted price was reflected in transactions, the number of deals was reported to be limited due to both low activity of European producers in the spot market and some reluctance from buyers to risk purchasing material at such high prices with such long lead times.
EU flat steel producers have been offering rolling coil for the third quarter, with some also offering fourth-quarter material, sources said.
Buyers in Europe were said to be monitoring flat steel prices in China, where a recent decline might indicate the end of the upward trend in the global market. Last week, China’s coil prices fell after Premier Li Keqiang called for stable commodity prices.
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €1,096.15 per tonne on Wednesday May 19, up by €13.65 per tonne from €1,082.50 per tonne on May 18.
The index was also up by €38.02 per tonne week on week and by €154.48 per tonne month on month.
Wednesday’s index was based on market participants’ estimates of achievable prices at €1,050-1,100 per tonne ex-works in addition to deals and offers at €1,100 per tonne ex-works.