Prices for European long positions are rising, market resistance remains
The recent wave of price increases for longs products across Europe has led to a slight increase in transaction prices. However, buyers are skeptical about a possible further increase in the current market conditions.
Market sources in Western and Southern Europe report that, despite the availability of demand, January was sluggish, mainly due to the fact that many buyers made purchases in December ahead of the end of the year, Kallanish reports.
To compensate for weak domestic demand, European manufacturers are increasingly focusing on export sales in Europe. However, logistical constraints are becoming an increasingly serious problem. "Logistics has become extremely expensive," confirms one of the manufacturers of long products. This month, due to low water levels in Switzerland, Germany and France, barge transportation, which is an economically viable option, was interrupted due to a prolonged lack of precipitation. There is also a shortage of ships, and some shipments are delayed.
Another source at the plant notes that shipping materials to another country is now almost twice as expensive as domestic road transport. Despite this, export activities are still necessary to maintain the order book and prevent a slowdown in production, which would otherwise lead to an increase in fixed costs during a period of high production costs.
According to a major European long paper producer, demand is generally stable and in line with what it calls the "new normal" for Europe. January is traditionally a slow month, and the decline in demand is seen as seasonal. Construction work is expected to resume in the coming weeks, as it was further limited in January by adverse weather conditions in several parts of Europe.
Sources report that ArcelorMittal increased prices in January by an average of €25-30 per ton ($29.73-35.67 per ton) compared to December for all long products. This is about 50 euros per ton higher than the lows recorded in October 2025.
Although the price increase is gradual, several sources at the factories emphasize that the January increase remains insufficient to offset rising costs. Electricity prices continue to rise, the cost of scrap increased sharply in January, and logistics costs remain high, which significantly affects profitability. Thus, manufacturers seem determined to keep raising prices, claiming that the current sales level is close to the cost of production.
One of the manufacturers adds that demand is being maintained.