ArcelorMittal is in the process of announcing new price increases for long products across Europe on the back of higher input costs and stronger demand, Kallanish understands from sources.

The company increased offers at the beginning of June, but it is now adding a further €40/tonne ($47.4/t) price increase effective immediately for all European spot markets and monthly contracts.

It is understood that category one section offers will surge as a consequence from €520/t delivered to €550-560/t delivered across Europe. Similar increases will be applied to merchant bar, rebar and wire rod mesh quality. Higher grade wire rod will also see offers increasing but clients buying on a long-term basis will be affected more gradually.

As reported, scrap prices across Europe have continued to increase since mid-June. In addition costs for electrodes, ferro-alloys and energy are also increasing for steelmakers across Europe. A source notes that since June the EAF-based mills have seen their electrodes, ferro-alloys and energy costs increase by as much as €18/t. As a consequence Celsa, the Spanish-headquartered longs supplier, announced a new €9/t surcharge for all its products. Other steelmakers such as ArcelorMittal on the other hand are building these higher costs into their price increases.

Together with higher input costs, demand for long products has also accelerated since June. It is understood order volumes currently are 20% higher than at the beginning of June and many mills across Europe are well-booked into September.