European steel coils market faces fresh mill hike, prices jump to Eur600/mt

London — Leading steelmaker ArcelorMittal has raised its European hot-rolled coil spot prices to Eur600/mt EXW Ruhr, sources told S&P Global Platts Nov. 19.

The offer hike is the latest in a series of price rises by European mills since the end of the summer period and comes on the back of strong momentum seen in the coils market amid material tightness and delivery delays. HRC prices have gained more than Eur130/mt since June, when they hit their lowest in four years. The Platts TSI index stood at Eur530.50/mt EXW Ruhr Nov. 18, having increased Eur4.50/mt on-day.

Platts understands that hot-dipped galvanized offers have also been raised, to Eur700/mt EXW Ruhr.

The initial reaction from buy-side sources was muted despite the expected imminent offer hikes.

"I fear that the market is in a panic to get material and that's not good. I will not fall prey to the situation," said a German stockholder. "Yes the shortage is bad, prices are going up, but prices are going up faster than the idled capacity will come back online and imports will come back to the market."