Severstal North America (NA) has just informed their North American flat rolled steel non-contract (spot) customers of their intention to increase prices.

In a letter to their sales associates, Severstal advised them of the new pricing which will be used on all new spot orders for hot roll, cold roll, galvanized and Galvalume coils.

The mill advised the reasoning behind the increase is due to "continued increases in raw material costs."

The new base prices out of the Severstal mills (most having lead times in June) are as follows:

Hot Rolled = $37.00/cwt ($740 per short ton or $817 per metric ton)

Cold Rolled = $42.50/cwt ($850 per short ton or $937 per metric ton)

Galvanized = $43.50/cwt base + extras ($928 per short on for .060" G90)

Galvalume = $44.00/cwt base + extras ($1171 per short ton on .0142" AZ50 Grade 80)

Electro Galvanized = $47.00/cwt base + extras

The increases are affective with any new orders as of today - April 12, 2010 - and all published extras as to be applied.

This increase announcement puts the Severstal NA pricing in line with the recent AK Steel announcement of last week.