In what most consider a "surprise" move, Severstal NA has announced spot base prices to be charged by product beginning with new orders for January as well as the base price they will be charging for February 2010. In our 32+ years in the steel business we cannot recall another time when back to back increases where announced by a mill on the same day (we do remember mills "rolling" prices from month to month to try to stem the downward pricing spiral).

SMU will have much more about the Severstal pricing announcement, what other mills are doing in the marketplace and our latest price indexes (Hot Roll, Cold Roll, Galvanized & Galvalume) in our newsletter which will be published later this evening (Tuesday). We are also in the middle of one of our market surveys and results from that will be out in our newsletter, this blog and other areas of our website over the next few days.

Here is a copy of the Severstal press release:

DEARBORN, Mich., December 1, 2009 – Severstal North America today notified its customers of increases in the prices of its full range of products, effective with orders in early 2010. Prices are being increased to reflect higher raw material and input costs.

Hot Rolled Bands $26.00/cwt (January) $27.50/cwt (February)

Cold Rolled $31.00/cwt (January) $32.50/cwt (February)

Hot Dipped Galvanized $32.00/cwt (January) $33.50/cwt (February)

Galvalume $33.00/cwt (January) $34.50/cwt (February)

EG $35.00/cwt (January) $36.50/cwt (February)

In addition, due to the increasing cost of zinc, coating extras will also increase effective January 1, 2010. The coating extras will be posted on the Severstal North America website (www.severstalna.com) under the Pricing and Support section in the “Products for Sale” catalog.

Both the increased base prices and the coating extras are effective with all new, non-contract orders promised in January 2010 and later. Full published book extras will apply.

About Severstal North America:

Severstal North America is the fourth largest steelmaker in the United States and specializes in the full range of the highest quality light flat rolled products. Fully integrated operations are located in Michigan, Maryland, Ohio and West Virginia. A new state-of-the-art electric arc furnace operation in Mississippi serves the growing demand for steel in the southeastern United States. Severstal North America also has several joint ventures for the highest quality coated products.

About Severstal International:

Severstal International is an operating division of OAO Severstal comprising the North American and European segments.