Leading European steel producer ArcelorMittal has raised prices for hot-rolled coils across Europe by another 20 euros ($23) per tonne for March delivery, Fastmarkets reported on Tuesday, December 16.
Several sources familiar with the situation confirmed to Fastmarkets that ArcelorMittal has announced a price increase of 20 euros per tonne for March delivery, with new offers priced at 670 euros per base tonne compared to 650 euros per base tonne for January/February delivery, which was announced in October.
As for the subsequent production of sheet steel – cold-rolled and hot-dip galvanized coils - according to sources, there was less demand in these segments compared to HRC.
It was reported that the latest HDG sales in Northern Europe amounted to 760 euros per base ton.
Some sources reported offers for the March HDG supply from the supplier at a price of 780 euros per base ton, delivered earlier this month. This is 30 euros per tonne higher than the HDG supply offers in January and February, which were confirmed in October at a base price of 750 euros per tonne.
No new offers have been received yet, but market sources noted that sentiment among other suppliers is becoming more optimistic following recent updates to the Carbon Dioxide Emissions Control Mechanism (CBAM).
The sources noted that the recent price increase in the European flat-rolled market was entirely due to changes in trading rules, in particular CBAM and the new trading regime, while real demand remained sluggish.
"[Flat steel]prices are slowly rising – however, only because of concerns about uncertain CBAM costs and new precautions, not because of demand," said a German buyer source.
"Very few companies can financially manage CBAM, so import operations have practically stopped recently. Dependence on domestic steel will be much greater next year, imports are becoming uncontrollable," said an Italian buyer.
European HRC prices have been generally stable in recent weeks as distributors and shareholders have held sufficient stocks and refrained from trading, awaiting greater clarity on new trade measures and CBAM, as well as postponing purchases.
The daily HRC index for Fastmarkets steel, for domestic consumption, exw in Northern Europe reflects the recent decline in the market, which continued in the range of 621-623 euros per ton during the week to December 12. Minor daily fluctuations characterized the generally stable dynamics of the market, although monthly changes still indicated a moderate upward trend.
According to the latest calculations by Fastmarkets, the daily HRC index for steel production
