ArcelorMittal raises prices for long positions: sources
ArcelorMittal is raising prices by 20 euros per ton ($23.73 per ton) under new contracts for all types of long products, including rebars, profiles and wire rods, market sources told Kallanish.
This decision followed a 20 euro per tonne price increase introduced in January, bringing the overall price increase to around 70 euros per tonne from the lowest levels recorded in October last year.
It is said that the price increase is caused by a further increase in the cost of production, which forces several other producers of long products in different countries to also raise prices by 20-30 euros per ton, another producer of long products confirms.
The increase in prices by the market leader is mainly due to an increase in scrap metal prices in Europe by an average of 40 euros per ton compared to the fourth quarter, as well as higher prices for gas and electricity. Energy costs have increased by 35-80% this winter, depending on each European country. High production costs further reduce the profitability of manufacturers and reinforce the need to restore sustainable pricing.
Sources expect that activity will improve as the construction season approaches. Some distributors are reporting the first signs of restocking, although overall demand remains uncertain, Kallanish notes.
Author: Natalia Capra France
Kallanish.com