ArcelorMittal raises HRC prices by Eur50/mt again as prices hit 9-year high

London — ArcelorMittal has increased hot-rolled coil prices by Eur50/mt to Eur700/mt EXW Ruhr on the spot market with immediate effect, sources told S&P Global Platts Dec. 17.

The hike is a continuation of the current price rally the European steel market is seeing. HRC prices are now on a 9-year high with the Platts index at Eur639.50/mt EXW Ruhr Dec 16.

The Eur700/mt offer is valid across Europe and for April delivery. Hot-dipped galvanized offers have also been increased to Eur800/mt Europe-wide.

The market is currently gripped by supply tightness with buyers scrambling for material as import offers are on a par with European prices or even higher.

December has been busier than usual due to supply shortage and the price rally. The move by ArcelorMittal is ending the year with a confidence that once market participants will come back from their seasonal holiday, the market will be buoyant.

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Market participants said there is a push for closing deals ahead of year-end with mills trying to "maximize" the momentum. Mills-side sources said they have a backlog of orders and buyers waiting to book.

"It's going fast it's bizarre. ArcelorMittal could be reality if there would be any material around," said a source.

Sources have previously been anticipating further hikes and worry that the supply tightness will further intensify well into next year as blast furnaces going on-stream will be outweighed by maintenance works and decommissioning.

"We must take care not to buy what we see," said a buyer source.

Other stockholding sources have however said they will need to buy regardless and have to absorb mill hikes with no other alternative around at the time being.