The latest price adjustment indicates that European steelmakers continue to pass higher production costs on to their selling prices.
EUR 45/tonne increase over two months
ArcelorMittal had already increased its long product prices by EUR 25/tonne in July. With the latest adjustment, the company’s total price increase for these products has reached EUR 45/tonne over the past two months.
One of the main factors behind the price increases is the rise in energy costs, which continues to put pressure on production costs in Europe. In particular, higher electricity prices are directly affecting the cost structure of plants operating electric arc furnaces (EAFs).
Cost pressures persist in the European long steel market
European steelmakers are facing elevated energy and other input costs, while the market continues to assess how much of these increases can be absorbed by demand.
Market sources note that the previous price increase in July was insufficient to cover production costs. Consequently, other European long steel producers are also expected to raise their prices in the coming weeks, hoping for a recovery in sales in September. Trading activity for rebar and wire rod in both Northern and Southern Europe remains sluggish due to continued uncertainty in the overall market.
ArcelorMittal’s latest price move indicates that producers in the European long steel market continue to pass cost pressures on to selling prices in an effort to protect their margins.
Looking ahead, energy costs, scrap prices and demand for finished steel are expected to remain key factors determining the direction of the market.
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