Sources in the market have confirmed that ArcelorMittal is raising offer prices for long products across Europe, on the back of higher scrap and other input costs.

The increase announced to buyers is of some €50/tonne ($54) for all products with immediate effect. A source notes that part of this hike has already been achieved in new orders. “Stockholders are looking to place new orders after a prolonged period of silence due to uncertainties created by macroeconomic challenges. A €25-35/t increase has been already achieved in Europe, compared with levels seen before the winter holidays,” the source observes.

Last week, British Steel also announced a price increase for merchant bar and sections, due to higher production costs (see Kallanish passim).

A source within a European steelmaker says that while energy prices have moved down somewhat in Europe, the rebound in scrap and raw materials prices has been strong enough to offset the reduction of energy costs.

The latest uptrend in scrap prices started in Turkey in mid-November, lifting HMS 80:20 prices to almost $420/t cfr Turkey at the beginning of 2023, the highest level since June 2022.