Nucor Announces Price Increase
On Thursday, August 13th, Nucor Steel announced their anticipated flat rolled steel price increases. In a letter to their customers, Nucor cited "increased order activity and strengthening demand" as the reason for this spot market price increase. The increases are as follows:
Hot Rolled spot prices will increase immediately (late September/October 2009) by $30 per short ton ($1.50/cwt).
Cold Rolled spot prices will increase immediately (same lead times as HR) by $30 per short ton ($1.50/cwt).
Galvanized spot prices will increases immediately (October 2009) by $40 per short ton ($2.00/cwt).
What is perhaps most interesting about the Nucor price announcement is not what they they did regarding base price but what they did not (or have not as of today) do regarding any changes in their coating extras. So far, the mill has been mute regarding any changes in coating extras - even with zinc costs now exceeding $.80/per pound.
The base price changes Nucor announced puts their base prices in-line with the rest of the domestic steel mills. For example, galvanized base prices will go from $31.00/cwt-$32.00/cwt to $33.00/cwt-$34.00/cwt + applicable extras.
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