German producer Thyssenkrupp has increased its offer to €800/ton ($802/t) according to some local buyers.
Italian integrated steelmaker Acciaierie d'Italia has increased their offers by €100/ton as of September 1, while other producers are heard to have increased by €50-70/ton.
One producer is targeting a minimum delivery of €800/t ex-works, while another seller has yet to decide whether to formally announce an increase.
According to sources, Liberty Ostrava has increased its hot rolled coil offer in central Europe by €80/ton to €870/ton.
Factories are trying to beat sluggish demand as well as higher energy costs that are pushing some into loss-making regions. Market leader ArcelorMittal said last week that it is targeting €850/ton for October deliveries, up €800/ton and €50-100/ton increase for November.
Some buyers will welcome the increases as they sit on stocks that have depreciated since April. However, given the sluggish demand in recent months and the weak economic outlook ahead, it is unclear whether producers will be successful.
Import offers can also be another hurdle. Asian offers were still below $700/ton for Italy today. Because producers in that region were not facing the same sharp increase in production costs.
Italian service centers say they will increase their finished coil prices at the same rate as the mills and will provide feedback to manufacturers based on end-user response. However, some pipe manufacturers doubt that the increases will continue as pipe and tube prices fall due to sluggish demand and competitive coil prices.
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