ArcelorMittal raises prices for long positions: sources

ArcelorMittal is raising prices for long products by another 20 euros per ton ($23.3 per ton) for commercial long products, rebar and wire rod, market sources told Kallanish. ,

This follows a previous price increase of 25 euros per tonne in July, bringing the total increase to 45 euros per tonne.

The market environment remains difficult for manufacturers, and instability due to the conflict in the Middle East is leading to higher prices for gas and electricity, which are crucial for steel mills with electric arc furnaces. A source

One warns that electricity prices have skyrocketed above acceptable levels, leaving producers with two options: to abandon the increase or significantly reduce production across Europe in the coming months.

Several sources describe the European long products market as extremely calm, as activity on it is practically not growing due to the holidays and the intense heat. "The main problem is that there is no stability in terms of costs. Scrap metal is the only cost that remains stable, but energy resources, both gas and electricity, continue to rise in price compared to what it was before the summer. This conflict seems to have no way out, and it has a huge impact on all chipboard manufacturers," the source says.

Another says that the price increases introduced before the summer are not enough to cover all costs, and believes that several major manufacturers will raise prices in the coming weeks, hoping that sales activity will increase in September. Sales of rolled wire

Prices remain low, and the market situation in both southern and Northern Europe remains challenging, as well as in the rebar segment, which is plagued by uncertainty. Kallanish notes that scrap metal prices in Europe remained mostly stable in August.

, ,

, The author:Natalia Capra, France