Steelmaker ArcelorMittal Europe has hiked offers by Eur20/mt ($24.24/mt) for hot-rolled coil to Eur1,020/mt and by Eur50/mt on offers for cold-rolled and hot-dipped galvanized coils to Eur1,200/mt for the German market, sources confirmed to S&P Global Platts late April 29.
The increases are expected to be rolled out across Europe April 30.
The fresh offer prices, heard after market close at 4.30 pm London time, come a week after a Eur30/mt increase on coils and two weeks after a Eur50/mt increase by ArcelorMittal.
Stockholder Klöckner CEO Gisbert Rühl said April 29 that even though prices are expected to continue rising, the speed at which they increasing may be decelerating. The Eur20/mt increase this week on HRC could be seen as a slowdown in price hikes: however, similar predictions have been proven wrong previously when ArcelorMittal issued a Eur20/mt increase in March.
The flurry of price hikes, not only by ArcelorMittal but also steel mills across Europe, has been absorbed quickly over the past months as material shortages look set to stay.
Though market participants have been expecting fresh hikes, the unprecedented rapidity of the steel price hikes remains astonishing for buyers who have little option under current market conditions than to accept the price levels.
"You almost can't believe it's possible, and then it happens. They can raise prices until the heavens but there is no material to speak of, they don't even offer anything right now," said an Italian buyer.
"Of course we want prices to stay this way, it's a real demand we are seeing, but we must be cautious, prices could decrease, and then there will be panic," said the source.
Platts' daily assessment for HRC EXW Ruhr rose Eur5/mt to Eur995/mt April 29, seeing a Eur27/mt increase on-week and a Eur155/mt on-month.
