Global steelmaker ArcelorMittal has raised prices for hot-rolled coils (HRC) in Europe by €40/t to €590/t.
The company is firmly committed to the current levels and has withdrawn all offers below €590/t. At the same time, NLMK La Louviere increased prices by about €25/t. Service centers have also responded to the price increases by steelmakers, with one offering a hot-rolled coil at around €605/t for small tonnages.
Steel mills have resorted to sharp price increases following the recent announcement of China’s economic stimulus and rising prices for steelmaking raw materials. In particular, the benchmark Argus 62pc Fe ICX iron ore index reached $109.35/t on October 1, up from $88.7/t as of September 23. At the same time, coking coal in Australia rose by $18.7/t, to $204.3/t FOB.
Steel producers point to improved demand from service centers, which may indicate that the market has reached the bottom. In addition, the automotive industry is expected to see a technical recovery in the first quarter of 2025 after a long stagnation.
In August-September 2024, prices for hot-rolled coils in Europe and China fell to their lowest levels since 2020. At the same time, North America saw some recovery in prices, which may indicate that the bottom has been reached after prices almost halved since the beginning of the year.
In August, some steel mills tried to raise HRC prices by €20-30/t, but consumers did not accept these intentions, as demand was weak and stocks exceeded consumption. However, the current increases, supported by the improving outlook in China and rising raw material prices, may be sustained for a long time and create a trend for further increases.
