According to market sources, the company is increasing offers for commodity grade products by around €30/tonne ($321) with immediate effect. For high quality products, long-term contracts for the second quarter are increased by at least € 50 / ton.
Sources among European suppliers are hopeful that this new price increase will be accepted as demand indicators improve and rising scrap-based production costs are welcomed.
The company had previously expressed its intention to increase its offers for long products in Europe in mid-January, but this move was not accepted by the market. Accordingly, rebar prices, which are at their lowest level since May 2021, fell in February in both Northern Europe and Italy, reaching a €765/ton ex-works base in northern Europe.
Market research shows that at the current price level, European producers have also significantly reduced their production of commodity grade longs in order to avoid selling below cost. In addition, if scrap levels continue to recover at their current pace, it is possible that this initial price increase could be followed by new ones.
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