ArcelorMittal Raises European Steel Prices as Energy Costs Surge

ArcelorMittal SA is raising its European steel prices as it tries to pass higher energy costs onto customers.

Hot rolled coil prices delivered in November will be hiked by 13% to 850 euros a ton, according to a person familiar with the matter. The move, which was first reported by Argus Media, is to offset increased production costs partly driven by Europe’s ongoing energy crisis. 

Other products made by the continent’s biggest steelmaker are seeing price hikes, according to Kallanish Commodities Ltd., which cited unidentified sources. The price of commodity-grade long steel, used in construction and typically made in a very power-intensive way, will be increased by 150 euros a ton, Kallanish reported.

Surging European power costs are hurting energy-intensive metal producers on the continent, forcing some to halt output entirely. Previously steelmakers have succeeded in offsetting them through surcharges and price increases, but that may become more difficult if the crisis causes demand to falter.