Luxembourg steel group ArcelorMittal will raise the price of hot-rolled steel on Monday, March 9, to 520 euros per ton for deliveries from the factory in North-West Europe and up to 500 euros per tonne in Poland, announced Argus, citing the company's customers who received the new price lists.
ArcelorMittal noted that the delivery time of steel under the order has significantly increased, reflecting the recovery of demand and can be the basis for raising prices.
However, customers questioning the probability of increasing, given the widespread uncertainty concerning the coronavirus and subdued final demand. This year, the service centers were able to achieve some increase in the cost cutting and slitting, as prices on roll has increased, but it would be another 40 Euro per ton or so, to justify the increase in cost of replacement even up to 500 euros per ton.
Clause imports also decrease, and this week the material in Antwerp costs about 460 euros per tonne. If ArcelorMittal will adhere to the price to 500 euros per ton from the proposed plant prices, foreign materials will be a viable option for buyers even with Chet uncertainty in the Asian supply due to the coronavirus.
At present, buyers from North-West Europe who wish to cover the delivery in June-July, suggesting a price of about 460-470 per ton from the factory, vs a much higher sentences, which indicates the uncertainty in the market.
over the last few weeks a small tonnage traded in the range 480-485 per ton, but the liquidity is preserved, and the majority of buyers continues to monitor the market.
