There are growing attempts to raise prices in the European steel market
In the first weeks of the year, the European steel market showed a complex dynamic, fluctuating between "new price levels" and "actual transaction rates". While spot prices in key centers such as Germany and Italy remain cautious, manufacturers have noticeably stepped up their attempts to raise prices in both the long products and flat steel segments.
ArcelorMittal's recent price announcements have played a crucial role in shaping the flat metal market. Despite the fact that prices for HRC delivered in April at 700 euros per tonne, HDG delivered in April at 820 euros per tonne and CRC delivered in May at 830 euros per tonne exceed current spot prices, they are important benchmarks for the market. Concerns about the "replacement cost" have become more pronounced among service centers and distributors, which reinforces expectations of higher prices. Although some short-term upside attempts may be limited to negotiations, it is clear that the overall direction of the market is trending upward. ArcelorMittal's price signals have increased the potential for higher market prices.
In Germany, rebar is sold at a price of about 580 euros per ton EXW and 600-615 euros per ton without VAT, while wire rod prices range from 590-600 euros per ton without VAT. Prices for thick-rolled products remain in the range of 690-700 euros per ton EXW. Flat rolled products such as hot-rolled coils (HRC) are sold at an EXW price of about 630 euros per ton, while the CRC price ranges from 725-735 euros per ton, and the HDG price ranges from 730-770 euros per ton. This price level reflects manufacturers' intentions to increase margins, although demand remains cautious.
The situation in Italy is similar, but somewhat more fragmented. Long products such as IPN/IPE are sold at an EXW price in the range of 720-740 euros per ton, while wire rod is sold at a CPT price in the range of 590-615 euros per ton. Prices for rolled steel products are 700-720 euros per ton excluding VAT, while prices for CRC and HDG are 730-750 euros per ton and 750-770 euros per ton excluding VAT, respectively. Prices for HRC fluctuate around 625-630 euros per ton of EXW, which is considered a point of equilibrium in the market. Prices in Italy remain more flexible compared to Germany, reflecting volatile domestic demand and more obvious import pressures.
There is a clearer upward trend in rebar prices in Southern Europe. In Spain, prices are approximately 640-650 euros per ton without VAT and 600-620 euros per ton without VAT. Portugal's market prices are about 605-620 euros per ton of EXW. When exported, Portuguese-made fittings are sold at a price of about 630 euros per ton, while Spanish-made fittings are sold at a price of about 660 euros per ton.