Global steelmaker ArcelorMittal has announced a €25/t ($25.6/t) price increase for long products in all European regions. The price increase applies to rebar, welded mesh, sectional products, and low-carbon and high-carbon wire. The new prices are effective immediately for all new orders, according to Kallanish.
The main reason for this move is the significant increase in energy costs, which makes current prices for long products unprofitable. In Germany, in particular, electricity prices have increased by 41% compared to October 2024. On average, gas prices in Europe increased by 22%. According to the TTF index, the cost of gas increased from €40/MWh in October to €48.2/MWh in January 2025.
Despite market weakness, other European steel producers also supported the price increase. Rebar, section and wire prices are rising in many EU markets. However, overall activity remains low and transaction volumes are limited, especially as the construction industry in France and Germany slows down.
At the same time, according to a major steel producer in the northern part of the EU, demand for certain long products, such as sections, has unexpectedly improved. An increase was also noted in the number of requests for rebar, which indicates a certain activity in the construction segment.
The last time ArcelorMittal reported an increase in prices for long products in Europe was in early October 2024. At that time, offers increased by €40 per tonne. The decision was made due to market volatility and rising raw material prices around the world.
