Market sources have told SteelOrbis that steel giant ArcelorMittal has issued a €30/mt increase for its flat steel prices in the European market. This move follows the announcement made earlier this week of a 3 million mt production cut in Europe on annualized basis due to weak demand and increased imports. The Luxembourg-based company reported an EBITDA of $1.65 billion in the first quarter, down 34 percent year on year. The company said that its profitability was hit by lower steel prices due to weaker economic activity and global overcapacity, as well as by rising costs of raw materials.
According to market sources, it remains to be seen whether the abovementioned price increase will be absorbed by the currently-weak European market, or whether it will be absorbed fully or partially. As reported on Wednesday, May 8, HRC prices in northern Europe are mostly around €475/mt ($532/mt) ex-works, while they are at €450-460/mt ($504-515/mt) ex-works levels in the Italian market.
€1 = $1.12