Posted on 06 Nov 2019
Sources in the European market have been reporting in recent days that ArcelorMittal is actively increasing offers for finished long products with immediate effect by €20-30/tonne ($22.2-33.3/t) depending on the product.
It is understood that a €20/t increase on offers for merchant bars, sections and wire rod (low and medium carbon) is being targeted. For rebar and wire rod mesh quality the increase is reported at €30/t.
The move is linked with the recent surge in the global scrap prices as well as the expectation for most of the November scrap settlements in Europe to move upward. In addition to the recovery in scrap prices, sources in the longs market note that order intake at mills is seen as improving since October. So far this month, demand seems to be functioning at a level some 10% above that witnessed in November 2018.
Import pressure on the long products market is also easing as quotas from the safeguard system are becoming more and more scarce.
Since mid-October longs prices across Europe have stabilised, according to Kallanish price series. The first upward movement in transaction prices was registered this week in Italy, where the market for rebar recovered by some €5/t week-on-week.
