ArcelorMittal Raises Long Product Prices in Europe by €30/t

European Long Steel Market Sees €30/t Price Hike Amid Margin Pressure

ArcelorMittal has announced a €30/t ($34/t) price increase for all long steel products across the European market. The move reflects mounting production costs and ongoing weak demand, as reported by Kallanish. Market participants indicate that producers cannot maintain current price levels due to escalating input costs, including scrap metal and energy, alongside reduced mill utilization.

The price adjustment affects key long product categories such as rebar, wire rod, and structural beams. Sources confirm that current pricing fails to cover production costs, forcing companies like ArcelorMittal to take corrective measures. Despite earlier production cuts in both Southern and Northern Europe, pricing pressure remains intense. This strategic move aims to stabilize market margins and offset inflationary cost pressures.

At the same time, other European mills are evaluating similar increases. For example, Italian rebar producers raised prices in early August before scheduled maintenance shutdowns, signaling broader pricing momentum across the region.

Demand Outlook and Cost Drivers in the EU Steel Market

While steel demand remains weak, Northern Europe is showing early signs of a post-summer recovery. Market players report a rise in inquiries for long products this week. However, the sector still struggles with low mill profitability, as prices remain approximately €40/t below January levels, even as input costs hold steady. Turkish scrap imports remain at around $340/t CFR, reflecting strong raw material price resistance.

The upcoming Carbon Border Adjustment Mechanism (CBAM) may also influence future pricing strategies. This EU regulation aims to impose a carbon cost on imports, potentially leveling the playing field for domestic producers like ArcelorMittal. As mills anticipate CBAM’s rollout, market expectations suggest further upward price adjustments could follow later this year.

Meanwhile, ArcelorMittal has already implemented a second base price increase for hot-rolled coil, now at €610/t delivered for Q4 shipments. This consistent pricing strategy indicates the company’s broader effort to restore margin stability across product lines, including flat and long steel categories.

SuperMetalPrice Commentary:

ArcelorMittal’s price hike underscores a critical turning point for the European long steel market. Persistent cost inflation, coupled with slow demand recovery, has put producers under considerable margin pressure. While short-term demand signals in Northern Europe offer a glimmer of hope, real recovery hinges on broader construction and industrial activity. The €30/t increase could trigger a domino effect across the EU steel sector, especially if CBAM accelerates price alignment between domestic and imported materials. Stakeholders should closely monitor input costs and regulatory shifts heading into Q4.