Europe’s largest steelmaker ArcelorMittal this week said it intends to hike prices for all coil products manufactured in the first quarter.
The price is expected to increase by €30-40/MT (USD 40-50), reported sources.
The company cited higher raw material costs and seasonal restocking for price hike, which usually takes place at the beginning of each year.
Other major integrated coil mills in Europe, such as ThyssenKrupp, Salzgitter and Tata Steel, have also voiced their intention to raise prices. “The price increases announced for January vary from €30-40/MT depending on mill,” a source with a major stockholder said.
ArcelorMittal is in the process of formalizing its new offers and has sent an internal memorandum to all European branches on the topic.
At present spot HRC prices in northern Europe are around €440-450/MT (USD588-600) ex-works, with a German steelmaker saying prices in his domestic market are closer to the top end of that range.
Following the increase, integrated mills are likely to be targeting €470-490/MT (USD630-657) ex-works for HRC. “Most stockholders and distributor believe for January production it is unlikely mills will achieve these hikes, but I believe February rollings will be sold at a higher level compared with today’s price,” a source noted.
While most purchasing managers at stockholders and service centres were reportedly “skeptical” about mills achieving the full increase; one source said that at the Blechexpo in Stuttgart a number of end-users were trying to secure long-term deals, expecting higher prices going into H1 2014.
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