Severstal North America (NA) is the first to increase prices on flat rolled steel products. All products were affected: hot rolled, cold rolled, galvanized, Galvalume and electro galvanized. As SMU mentioned over the weekend we expect other mills to follow the Severstal NA lead. Here is the original letter sent to the Severstal NA sales team:

To: Severstal North America Sales Team

Subject: Market Direction

The market is changing; raw material prices continue to rise and while we have experienced recent short-term price adjustments due to a supply/demand imbalance, the underlying economic momentum is steady and industrial production continues to grow. We expect that we have reached the bottom of the current cycle.

Consequently, we will revise our pricing in line with the current market direction and the anticipated levels in September. Effective with all new orders for delivery September 6th and later, quoted prices will be increased as follows:

Hot Rolled Bands + $30.00/ton

Cold Rolled + $30.00/ton

Hot Dipped Galvanized + $40.00/ton

Galvalume + $40.00/ton

EG + $40.00/ton

Collecting full published price book extras is also critical.

If you have any questions regarding specific quotations, please contact your General Manager.

The letter was signed by Tom Marchak, Vice President of Commercial.

Steel Market Update indicated in our blog last Friday of a potential for a pricing change in the North American flat rolled steel market. You can read the post here on our website: www.steelmarketupdate.com

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