ArcelorMittal's (NYSE:MT) reported increase to European flat steel delivery prices for October and November likely is not enough to lift the company's margins, Jefferies analysts said Tuesday, according to The Wall Street Journal.

Argus reported last week that ArcelorMittal (MT) will target higher price levels for those two months, primarily due to high production costs.

According to Argus, the steelmaker is targeting €800/ton for remaining October deliveries of hot-rolled coils and €850/ton for November deliveries, raised from previous offer levels at €750.

"With near-term demand remaining weak, this is ultimately a more defensive price hike and, in our opinion, less likely to be successful," Jefferies analysts Alan Spence and Christopher LaFemina wrote.

ArcelorMittal (MT) offers "a strong balance sheet [that] allows for opportunistic M&A," The Investment Doctor writes in a bullish analysis posted recently on Seeking Alpha.