ArcelorMittal is raising coil offers in Europe, with immediate effect, sources in the European market tell Kallanish. The move is said to be supported by high production costs and the margin-crunchingly low mill prices seen in September.

ArcelorMittal is now reported to be offering hot rolled coil in northern and southern Europe at €590/tonne ($652) base ex-works, up some €40/t compared with offers registered last month. Other northern European producers are also increasing their offers by €40-50/t, sources report. The market leader is also said to be increasing by €40/t its hot-dip galvanized and cold rolled coil quotes.

September saw the low point of HRC prices from northwest European integrated steelmakers undercut the €550/t ex-works mark, with some sources reporting one mill was prepared to sell at €520/t.

The underwhelming return of market activity in September dashed hopes for a post-summer price rebound in Europe, with coil prices in fact going in the opposite direction. However, Chinese economic stimulus measures announced last week have significantly lifted global market sentiment, albeit doubts remain over the sustainability of any uptrend.