SteelOrbis sources report that there has information in the European market in the past week about ArcelorMittal increasing its prices of commodity-grade long products (such as rebar, wire rod and beams) by €100/mt.
The move would be aimed at compensating for the surge in energy costs and would follow the imposition of a temporary input cost surcharge of €50/mt in October this year. According to sources, a further €100/mt increase may be implemented in January.
However, a few sources are not sure ArcelorMittal will be successful in hiking prices much further. "I haven't seen anything official at the moment, but it's something being talked about," said an international trader commenting on the reports of the abovementioned increase. "Some even say ArcelorMittal is aiming at increasing prices by €200/mt. For now, everyone is puzzled, even sceptic, since the market went on holiday before us… The market doesn't look very bright in January, also because of possible scrap price decreases," the source added.
Since October, the surge in electricity costs pushed EU EAF-based producers in particular to reduce their production by shortening work shifts and interrupting activities during peak hours, and this could result in lower supply volumes in the coming months.