Global steel producer ArcelorMittal has increased its coil offers significantly across Europe on March 10, confirming the rumors circulating in the previous few days. According to sources, the company’s HRC offers are up €150/mt, from €1,150/mt announced on March 1, to €1,300/mt. At the same time, the producer's offers for CRC and HDG are at €1,400/mt and €1,450/mt respectively, also up €150/mt. As reported previously, offers are lacking both from domestic producers and foreign suppliers against the backdrop of surging energy prices and the lack of supplies of raw materials, semis and finished steels from the CIS region after Russia's invasion of Ukraine. Sources have underlined that the few mills that have returned to the market with offers are giving very limited volumes because of the great uncertainty currently prevailing.
Before the invasion of Ukraine by Russia, transaction prices were at €950-1,000/mt in northern Europe and at €870-900/mt in the Italian market, both ex-works. Currently, indicative price levels are reportedly around €1,200-1,250/mt in northern Europe and around €1,150-1,250/mt in the Italian market, both ex-works. As reported previously, buyers may be willing to pay these record-high prices in order to obtain the material they need, though they may encounter financial difficulties in doing so.
In this context, most foreign HRC suppliers have preferred to withdraw their offers in order to better assess the situation.