OMH H1 profit jumps to RM268.9 million

The producer will also stop a direct reduction plant in Hamburg, where it produces wire rod, from the fourth quarter.

European market leader ArcelorMittal is idling blast furnace A at its Asturias plant in Spain in response to weak demand.

South Korean ferrous scrap imports fell by 24pc from a year earlier in July because of cheaper domestic scrap and high inventory levels.

Part of what will lead to increasing prices will be rising costs both for raw materials and energy, according to Kestenbaum.

More European steelmakers are announcing increases following ArcelorMittal's announcement last week.

The increases are underpinned primarily by higher production costs.

Integrated steelmaker US Steel and its union membership appear to be at an impasse over contract negotiations.