Breaking News: ArcelorMittal raises European coil offers again
Kallanish Steel | Feb. 26, 2021
ArcelorMittal has informed European customers of a new price increase, mainly for cold rolled coil, hot-dip galvanized coil and organic coated coil, Kallanish learns from sources.
It is understood that HDG offers will now be lifted to €900/tonne ($1,090/t) ex-works base, representing a €20-40/t increase on current transaction levels in northern Europe. CRC and organic coated coil will see offers raised €20/t from current levels.
The positive sentiment is set to also be reflected in the hot rolled coil market. However, for the time being an official increase from the latest asking price of €750/t ex-works base for northern Europe has not been announced.
Market sources remain confident the upward momentum will continue in the coming months, as tight supply continues to be an issue in the sector. "When we were discussing long-term contracts in late 2020, we would have never thought HDG prices would have reached €900/t ex-works," a source at a supplier comments.
"Back then we agreed contracts at below €700/t ex-works for HDG,” he continues. “Despite the big jump, we are not renegotiating existing contracts, but the increases are affecting the spot market and will be taken into consideration in new negotiations.”