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ArcelorMittal aims to increase long-term price offers in Europe

Market sources confirm that ArcelorMittal has announced higher target prices for long products across Europe to compensate for some of the margin loss caused by higher scrap and energy prices over the summer.

ArcelorMittal aims to increase long-term price offers in Europe

New offer levels were reported to be €40/ton above the latest available offers for all commodity grades and new monthly and quarterly contracts.

Demand for long products in Europe has been relatively slow, but steel producers believe that stock levels in the supply chain are exhausted and are therefore optimistic that a recovery could be seen soon. "Confidence should return to the market as we have seen several quarters characterised by a low demand scenario, which we have not seen since the 2008-2009 crisis," a source said.

Rebar prices in Northern Europe and Italy have been more or less stable since early June. ArcelorMittal increased its offers at the end of June, but the increase was not accepted by the market.

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