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.

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

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

The company plans to sell its USW-represented blast furnace steelmaking plant in Granite City, Illinois, to SunCoke by 2024.

The fall in premiums has not come as a surprise as weak demand continues to delay settlements for third-quarter pellet premiums, particularly among Japanese mills.

CMC recycles and manufactures steel and metal products at its facilities in the US and in Poland.

Open interest on the CME Group's north European hot-rolled coil contract hit another record level on Tuesday, as daily traded tonnage also reached a new high.