ArcelorMittal Significantly Raised the Quotation of European Hot Rolled Coil

After the outbreak of the conflict between Russia and Ukraine on February 24, the steel exports from Russia and Ukraine to Europe were interrupted, and European steel mills also withdrew their original steel quotations for reassessment. At the same time, the continuous rise of energy prices in Europe is also increasing the production costs of steel mills.

ArcelorMittal, a mainstream European steel mill, recently released the latest ex factory quotation of hot rolled coil to the whole European region, which is 1150 euros (1287 dollars) / ton. The new quotation is significantly higher than its previous quotation in northern Europe by 180 euros / ton. ArcelorMittal hot coil has a high market share in Northern Europe. Meanwhile, the latest ex factory quotation of ArcelorMittal cold rolled coil is 1250 euros / ton, and the latest ex factory quotation of hot-dipped galvanized plate is 1300 euros / ton. It is reported that some other steel mills in Europe are also about to raise the quotation of hot rolled coil, with a range of 150-200 euros / ton.

Some market participants said that because some European hot rolled coil manufacturers rely on imported slabs from Russia and Ukraine, they are also facing slab shortage. There is great uncertainty about the hot rolled coil resources that European steel mills can provide to the spot market in the later stage. On the other hand, the Turkish market was also the main market for the export of hot rolled coils from Russia and Ukraine. After the interruption of the supply of hot rolled coils from Russia and Ukraine, the hot rolled coils produced by Turkish steel mills will be more provided to the domestic market, and the hot rolled coil resources available for export to Europe will also be reduced.