ArcelorMittal has announced a price increase of €25/t ($25.6/t) for long products in all European regions. The price increase applies to rebar, welded mesh, section products, and wire.
The main reason for this move is the significant increase in energy costs, which makes the current prices for long products unprofitable. In Germany, in particular, electricity prices have increased by 41% compared to October 2024. On average, gas prices in Europe have increased by 22%. According to the TTF index, gas prices have increased from €40/MWh in October to €48.2/MWh in January 2025.
Despite the market weakness, other European steelmakers have also supported the price increase. The cost of rebar, sections, and wire is increasing in many EU markets. However, overall activity remains low and transaction volumes are limited, especially with the construction industry slowing down in France and Germany.
At the same time, demand for certain types of long products, such as sections, has unexpectedly improved. An increase was also noted in the number of requests for rebar, which indicates activity in the construction segment.
As a reminder, ArcelorMittal last raised prices for long products in Europe three months ago. At that time, offers increased by €40/t. The decision was taken due to market instability and rising raw material prices around the world.