ArcelorMittal raises HRC prices by Eur50/mt again as prices hit 9-year high

ArcelorMittal has increased hot-rolled coil prices by Eur50/mt to Eur700/mt EXW Ruhr on the spot market with immediate effect, sources told S&P Global Platts Dec. 17.

The hike is a continuation of the current price rally the European steel market is seeing. HRC prices are now on a 9-year high with the Platts index at Eur639.50/mt EXW Ruhr Dec 16.

The Eur700/mt offer is valid across Europe and for April delivery. Hot-dipped galvanized offers have also been increased to Eur800/mt Europe-wide.

The market is currently gripped by supply tightness with buyers scrambling for material as import offers are on a par with European prices or even higher.

December has been busier than usual due to supply shortage and the price rally. The move by ArcelorMittal is ending the year with a confidence that once market participants will come back from their seasonal holiday, the market will be buoyant.

Market participants said there is a push for closing deals ahead of year-end with mills trying to "maximize" the momentum. Mills-side sources said they have a backlog of orders and buyers waiting to book.

"It's going fast it's bizarre. ArcelorMittal could be reality if there would be any material around," said a source.

Sources have previously been anticipating further hikes and worry that the supply tightness will further intensify well into next year as blast furnaces going on-stream will be outweighed by maintenance works and decommissioning.

"We must take care not to buy what we see," said a buyer source.

Other stockholding sources have however said they will need to buy regardless and have to absorb mill hikes with no other alternative around at the time being.

Source: S&P Platts

Recent Posts

See All

European steel prices recover but demand wanes

The announcement of the new quota-based steel trade deal between the EU and the United States, although short of detail, boosted the mills’ confidence. Purchasing activity, however, remains weak. A nu

worldsteel Short Range Outlook October 2021

The World Steel Association (worldsteel) today released an update of its Short Range Outlook (SRO) for 2021 and 2022. worldsteel forecasts that steel demand will grow by 4.5% in 2021 and reach 1,855.4