Global steel giant ArcelorMittal has stopped supplying hot rolled coil (HRC) to UK-based Liberty Steel's galvanizing lines in Europe, according to media and sources polled by SteelOrbis. Other suppliers are also cutting their supplies after the news of financial problems at Liberty Steel following the collapse of its biggest financial backer, Greensill Capital.
Liberty Steel has galvanizing sites in Liège-Dudelange in Belgium, with a total annual capacity of 1.6 million mt of galvanized/coated steel. The supply problem for the production of galvanized coils had already been an issue last year, when ArcelorMittal reduced its supplies, some sources underlined. However, deliveries resumed after negotiations. Now the situation is different, as Liberty Steel's financial crisis adds to the problem of the severe tightness of product availability in the European market. According to sources, Liberty has stocks that allow it to operate for a few weeks only, so the producer will have to secure material elsewhere, though supplies are low for everyone. For this reason, HDG prices may soar further in the region in the coming period. Late last week, ArcelorMittal raised its HDG prices to €920/mt ex-works, while transaction prices in the market have reached €880-900/mt ex-works this week.