Europe's largest steelmaker ArcelorMittal has increased its hot-rolled coil (HRC) offer by €40/t to €590/t base in northwest Europe.
All offers below this level have been withdrawn and the company is "firm" on this level, buyers said. One service centre reported an offer around €605/t base, for a small tonnage. NLMK La Louviere has also increased its offer by around €25/t, according to sources.
The increases follow a sharp rise in China following the country's recent stimulus announcement, and firmer raw material costs — Argus' benchmark 62pc Fe ICX iron ore index hit $109.35/dmt on 1 October, up from $88.70/t on 23 September, while fob Australia premium low-volatile coking coal prices jumped by $18.80/t to $204.30/t.
Service centres have been trying to add additional tonnages to existing deals in recent days, according to mill sources, which they suggest is a signal buyers think the market has reached a floor. They also anticipate a technical rebound from the automotive sector in the first quarter of next year, after a weaker period of late.
Futures markets have also been reacting to the increases in China, and talk of higher EU offers. As off 11:23 London time (10:23 GMT), over 26,000t had traded on the CME Group's north European HRC contract, with two 10,000t January-February spreads trading at -€10/t, lessening the pronounced contango of recent days. A 4,000t October-December spread traded at -€65/t, with the outright prices at €565/t and €630/t.
