NLMK USA became the second mill in as many days to jump on the price increase band wagon. Unlike the Severstal announcement which named specific base prices as “minimums” the NLMK increase letter to their customers asked for a $50 per ton increases. The NLMK letter was sent out under the signature of Executive Vice President for Commercial, Jim Banker, Jr. Here is the content of their letter:

“Effective immediately, NLMK USA will increase base prices by a minimum of $50 per ton. This applies to all new orders on all products. NLMK USA reserves the right to re-quote any offers not yet confirmed.

We have seen continuing strength in the energy, agriculture, heavy equipment and automotive markets, and while construction activity remains slow it is no worse than earlier this year. The economy continues to improve albeit slowly. However, over the past few months we have also seen compression between market prices and raw material costs, and this compression has now reached an unacceptable and unsustainable level.”

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