The European steel market is facing another wave of price increases: leading Italian and German metallurgical companies have announced a rise in the cost of long products by 50–70 euros per ton. This information was shared during an industry meeting in Düsseldorf.
This is reported by Finway
German and Italian Mills Raise Prices on Long Products
German rebar manufacturers have informed their clients that the new price offers will be around 710 euros per ton for delivery, which is 50 euros higher than the last agreements made over the past two weeks. Meanwhile, one of the largest Italian steel mills predicts an even more significant increase, indicating that the price rise will exceed 50 euros per ton. For comparison, the previous offer from this company, which has not yet been approved by buyers, was 680 euros per ton on an ex-works basis.
Reasons for the Price Increase and Market Impact
The main factors influencing the increase in the cost of metal products are rising energy prices and increasing logistics costs. Additionally, the strengthening of the European Union’s protective measures regarding imports, including the introduction of new tariffs and the operation of the Carbon Border Adjustment Mechanism (CBAM), bolsters the position of local producers within the European market. Following the latest round of price increases, the margins for mills have also risen, and market participants believe this trend may continue, considering the persistence of protective measures and rising energy costs.
“Significant price increases could provoke a loss of orders due to substantial stocks of imported products that are still present in many European markets. However, the cumulative impact of importers’ costs on CBAM, the tightening of new EU protective measures from July, and rising energy and logistics costs will ultimately encourage buyers to accept new levels – this opinion was expressed by participants at the industry event.”
At the same time, representatives from certain mills note that the market is likely to accept the new prices by mid-May. Buyers are also expressing readiness for further increases in product costs, considering the changes that have already occurred since the escalation of the conflict in the Middle East.