ArcelorMittal announces increase in rental prices

ArcelorMittal has begun to announce to its sales agents and customers across Europe that it intends to raise prices for long products. This will apply to all new orders that will be delivered in July and the third quarter.

The increase is calculated at around € 15 /tonne ($ 16.85 /tonne) for sections and trading rods, € 20 /tonne for rebar, wire mesh quality and low carbon content, and up to € 30 /tonne for high quality wire rod.

Despite a challenging first half of the European economy, ArcelorMittal increased sales by 5% year over year over the same period last year in the first five months. The European construction sector performed better than other sectors and the impact of the problems affecting the automotive sector was less visible on the long-term business than on flat products.

Looking ahead, the steel company expects demand to continue to recover in the second half of the year. This will be supported by declining customer inventory levels and easing some US trade barriers in Turkey, Mexico and Canada.

The increase is also intended to help the group recover margins as they were hit hard by rising iron ore prices and CO₂ costs amid falling finished steel prices.

A market source comments that it will soon be said if these increases will be fully adopted. Price waste in Europe has not recovered significantly, but it could rise in the coming weeks on the back of improved sentiment in Turkey if that happens.