The Luxembourg mining and metallurgical company ArcelorMittal has today increased its offer for the European market for hot-rolled steel to 700 euros per tonne and cold-rolled steel to 800 euros per tonne for delivery from April to May 2021.
Lakshmi Mittal's company cited a queue of buyers trying to get material in the second quarter of next year and supporting fundamentals as justification for another hike.
This is the third price hike at ArcelorMittal in less than a month, totaling € 150 /t.
ArcelorMittal's recent negotiations with automakers to fix prices for the first half of 2021 at € 100 above the spot price looked fantastic and caused extreme irritation among buyers. Many automakers have abandoned such conditions and will now pay 50-60 euros more per ton of steel than their more compliant competitors.
As we have reported , the European steel market is in panic among buyers due to the growing supply shortage. Most European metallurgical plants in November refused to accept orders for steel for February - March next year, citing the fullness of order books and the lack of free capacity.