This week, Europe's largest steel producer ArcelorMittal has announced its decision to increase hot rolled coil (HRC) prices in long-term contracts with northwest European service centers and distributors. The new offer price is €550/mt ex-works, which is about €100/mt higher compared to 2020 contracts, according to sources. Activities have slowed down this month in the European HRC market compared to August and September, but ArcelorMittal said it believes that the market still has good momentum. As reported previously, supply is still at reduced levels in Europe, as only a few plants have been restarted and competitive import offers are lacking, while local mills' order books are good with lead times into January-February in northern Europe.
Currently, HRC spot prices are at €490-500/mt ex-works in northern Europe, but market sources believe they will increase in the coming period if ArcelorMittal's attempt to push prices in long-term contracts is successful, even partially.