ArcelorMittal hikes EU steel coil prices again

ArcelorMittal has increased its European hot-rolled coil offer to €730/t for second quarter deliveries with immediate effect, up by €30/t on its official offer at the end of last year.

The company also increased its cold-rolled coil offer to €820/t, while hot-dip galvanised moved to €850/t base with immediate effect, again for second quarter deliveries. The HDG offer is up by €50/t from the end of last year and is supported by extended lead times — one mill has told customers its coated lead time is now into August. Some customers have already paid more than €800/t base for galv — HDG demand has been strong in recent months because of the sharp uptick in automotive purchases.

This is the company's fourth price increase since 19 November, amounting to a cumulative jump of €180/t. Since the first announcement, Argus' benchmark northwest EU HRC index has risen by €157.25/t, from €511.50/t to €668.75/t, as of yesterday.

While the market is slowly restarting from the festive period, after an extremely busy December, supply remains tight and domestic mills are emboldened by continued strength in import offers and high costs. Third-country offers into Antwerp have been touching upon €690-700/t cfr in recent days, and on long lead times.

By Colin Richardson