The company withdrew all offers below this price level, citing increasing raw material costs due to China's economic stimulus as the key driver behind the decision. For example, iron ore prices increased from $88.7/ton to $109.35/ton in a short period of time.
During the same period, NLMK La Louviere followed a similar strategy by increasing its HRC prices by around €25/ton. Some service centers also lowered their prices to as low as €605/ton, indicating that the price hikes by steel mills have resonated across the market.
One of the underlying reasons behind the price increases is said to be the recovery in demand. Increased demand, especially from service centers, and reduced inventories suggest that the market may have bottomed out. Moreover, the automotive sector is expected to experience a revival in the first quarter of 2025 after a long period of stagnation.
HRC prices in Europe and China decreased to their lowest levels since 2020 in August and September. However, North America saw a slight rebound in prices. In August, steelmakers tried to increase prices but failed due to weak demand and high inventories. However, the current economic recovery and the rise in raw material prices point to a long-term price rally.
Comments
No comment yet.