ArcelorMittal increases EU coil offer prices

Europe's largest steel producer by capacity ArcelorMittal has increased its coil offer price to €820/t for hot-rolled coal (HRC) and €940/t for hot-dip galvanised (HDG).

The fresh quotation is up by €40/t from the company's last official offer prices of €780/t for HRC and €900/t for HDG.

The new offer follows greater acceptance of higher prices from some buyers last week, although market participants are still concerned about the sustainability of the uptrend with real demand from some sectors recently lagging apparent demand levels.

Argus' benchmark daily northwest EU HRC index so far in February has increased a total of €20.50/t. But last week alone it rose by €21.25/t as buyers that needed supplies gave in to higher prices. Argus' headline daily Italian HRC index has increased by €11.50/t so far this month to €765.75/t on 10 February.

Other large north European steel producers reported achieving €800/t and €940/t base delivered for HRC and HDG late last week but into southern Europe. A German producer has redirected supplies from the automotive market into general industry, meaning buyers in the country feel they can wait longer before purchasing as supplies do not feel as tight as elsewhere. German service centres are also not as low on inventories as some of their regional counterparts because of their automotive exposure.

By Colin Richardson