ArcelorMittal is in the process of raising its offers for new orders of long products across Europe by €20/tonne ($22.7/t). This is on the back of the recovery in raw material costs as well as the ongoing revival of demand in the market as Spring approaches, Kallanish hears from sources close to the company.

The group’s European sales force is currently communicating the move to all clients, with the move affecting new orders for both spot and monthly sales.

Kallanish has recorded a pick-up in scrap values across Europe as well as a slight recovery in long prices in the south of the continent. Transaction prices for longs in Northern Europe continue to stall, but the signs are that a price increase is expected to materialise by beginning of March.

The move by ArcelorMittal comes also as discussions continue regarding the new safeguard quotas system in Europe. Specific country-based quotas for Turkish rebar and wire rod are now exhausted until the end of June. Importers who buy from Turkey will only be able to use the remaining general quota in the second quarter.

“The issue with quotas of Turkish rebar and wire rod is real, but I believe that the current situation is only the result of an overflow of requests from the temporary measures,” a source at a European supplier says. “I don’t see availability issues for rebar and wire rod from European suppliers.”