Update on North American Steel Prices
Earlier today Nucor came out with a $40 per ton price increase on hot rolled, cold rolled and galvanized sheet steel. As the day wore on and more information has become available to Steel Market Update our understanding is there is a spread of pricing out of the Nucor mills. By this we mean not all customers and not all mills are receiving the same base prices on each product.
Our understanding is the range of pricing for hot rolled is $32.00/cwt - $33.00/cwt ($640-$660 per ton).
Cold rolled ranges referenced out of various Nucor mills are $37.50-$38.00/cwt base ($750-$760 per ton).
While galvanized base prices range from $38.00/cwt-$38.50/cwt plus Nucor extras ($760-$770 per ton base + extras).
We are not yet aware of any new transactions occurring at these new steel prices. It is normal for the market to take a number of days to digest mill increases and then negotiate final transaction pricing. Contact your Nucor representative in order to obtain pricing for your specific account as individual mills and customers prices may vary.
Nucor was not alone today as California Steel Industries announced a "minimum" $25 per ton ($1.25/cwt) base price increase effective immediately.
Our sources have told us California Steel (CSI) attempted a similar price increase earlier this year only to withdraw it shortly thereafter due to their competition under-cutting their new pricing. We will watch the situation in California closely and report when transaction pricing becomes available.
Lead times are starting to stretch at the integrated mills. Steel Market Update will have more regarding pricing and lead times in Thursday evening's edition of our newsletter.
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