EU HRC: More mills target rises

More European steelmakers have announced price increases.

Italy's Marcegaglia has informed its customers of €20-30/t rises following ArcelorMittal's recent announcement that it was moving offers to €510/t ex-works for southern and eastern Europe and €530/t ex-works for the north.

Italian mill Arvedi was planning to close its sales window at current prices on 10 May, in anticipation of firmer offers going forward.

Mills have been losing money at current prices and want to reverse this trend, implementing production cuts in an effort to tighten the supply-demand balance.

Italian mills are cutting production by 10-20pc, according to buyers — with summer maintenance periods also expected to be extended.

But buyers asay they doubt that the increases will hold against a weak demand backdrop. In general, European service centres are well stocked, although some have run down their inventories in the softening price environment.

At the same time, import offers are slipping. The latest sales into Italy were heard around €460/t on a delivered basis. Turkish mills are struggling with a 50pc reduction in domestic demand and are becoming increasingly keen for sales as potential export markets dwindle.

Argus' domestic northwest Europe HRC index was unchanged, at €474/t ex-works.