ArcelorMittal raises European flat steel prices by €30/t

Release time：Apr 17, 2019 From：admin

According to recent sources, European steel producer ArcelorMittal has raised European flat steel prices by €30/tonne.

An executive at ArcelorMittal confirmed that the new price policy will take effect immediately.

"We are full of confidence in the international situation," the executive said. “Asia is on the rise and imports are gradually growing. The market generally believes that the time has come to replenish the warehouse, and the overall situation has improved, but the European market is clearly behind Asia.”

Some market participants welcomed the move and thought it might prevent further price declines, but other steel mill sources were still hesitant about whether to follow ArcelorMittal.

A German steel mill source said that ArcelorMittal's price in the past few weeks was below average and must catch up.

He said: "Before the price has fallen sharply. This may be an opportunity for us (upward). But I am skeptical because it is not just their problem." He added that several second-tier steel mills are still The lower end of the market price range is sold.

In January of this year, the price of flat steel in northern Europe was weak, and the impact of hot rolled coil was particularly serious. It has fallen by about 20 euros/ton since the beginning of this year.

At the end of January, the ex-factory price for hot rolling in the Ruhr region of Germany was 490-505 euros/ton, while the ex-factory price for cold-rolled mills was 580-605 euros/ton, and the ex-works price for hot-dip galvanizing was 600-620 euros/ton.

A German buyer said that signs from Asia and other importing countries indicate that prices will rise, but most European steel companies believe that the EU local market has not yet gone out of the doldrums.

The source said: "My impression at the time was that the steel mill had given up and was waiting for the opportunity."

“Their price may rise by €15-20/ton. If there are several factories that do this, then it may work. But this may not be possible until March,” the source added.

Sources agree that HRC prices are most likely to change first because they are the most traded varieties on the spot market.

Another European steel mill source said: “The southern European market will first greet the price adjustment, but given the current order booking situation, this will not happen immediately.” “But with the cost of raw materials, import prices, prices in Asia and the Black Sea, And other factors, the market framework is improving."

Iron ore prices have been rising steadily after the dam-breaking accident in the Vale on January 25 .

According to sources, the actual production loss is not the biggest problem, but if Vale stops production in other mines for inspection, it may bring a chain reaction, gradually pushing up the premium and pellet price.