ArcelorMittal increased its HRC (Hot Rolled Coil) selling prices in the European market by €50/tonne to €800/tonne on the first day of the new quota period that will come into effect on 2 January 2024. At the same time, HDG (Hot Dipped Galvanised) prices were also increased by €50/ton to €920/ton. Before the increase, the company was offering €740/t HRC to the southern EU and €750/t to the north.
ArcelorMittal is said to have taken the price hike into consideration the potential tightness in the supply of imports, which will be caused by the filling of most of the HRC quota at the start of the new quota period and China's filling of its HDG quota.
Some buyers said that the new price was too high compared to the last deals, which were below €700/t for February and March deliveries.
In this case, the new price of €800/t will open the door for other exporters, particularly Turkiye, which has been uncompetitive in recent months. For Turkish producers, assuming an export price of $700/t FOB and the lowest import duty, they could sell slightly below €700/t CFR EU.
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