London — Major steelmaker ArcelorMittal has increased hot-rolled coil offers to Eur900/mt ($1,060/mt) and hot-dipped galvanized offers to Eur1,500/mt across Europe, sources told S&P Global Platts March 26.
Receive daily email alerts, subscriber notes & personalize your experience.Register Now
The previous offer levels were at Eur850/mt for HRC and Eur970/mt for HDG. The fresh increase, which is the third this month and just one week after the last one, comes on the back of an unprecedented price rally that has seen the Platts daily HRC assessment hitting an all-time high of Eur830/mt EXW Ruhr March 25.
The latest offers are understood to be for September/October delivery from northwestern European mills.
Related Feature: Northern European HRC prices reach record high: Platts data
The fresh offer prices were making the rounds in the market early March 26 and buy-side sources said they are unprecedented.
Lead times continue to be unusually long amid the supply shortage that is gripping Europe. Mill-side sources said that although they are ramping up production there is no easing yet to be seen of the supply situation.
Supply and demand have been off balance since Q3 2020 as a demand pick-up after pandemic-related closures outpaced mills' ramp ups, with mills battling technical problems and growing order backlogs.
An Italian buy-side source described the fresh offer level as "crazy". He added that as the material shortage is getting more severe one mill has decided to stop taking orders until the Easter holiday period, while other mills are getting increasingly delayed.