Steel Products
U.S. Steel Announces New $50 per Ton Price Increase
Written by John Packard
February 27, 2013
Steel Market Update (SMU) started receiving calls by late this afternoon advising us to prepare for a new round of price increase announcements. This afternoon, United States Steel Corporation (USS) put out a letter under the signature of RY Kopf, General Manager North American Flat-Rolled Marketing, advising the various General Managers of Sales of an immediate change to USS spot pricing.
According to the memo seen by SMU, “Effective immediately, base pricing for all new Flat-rolled products spot orders is increased by a minimum of $50 USD per net ton. This increase is applicable to all open quotes and/or negotiations where an agreement is yet to have been concluded, and pricing extras, as published on our corporate web site, will continue to be fully applied.” From a midwest service center.
As many in the industry know, it is unusual for U.S. Steel to publically publish their price announcements preferring to communicate their intentions with their customers verbally.
This is the second price increase by U.S. Steel this year. Shortly after the AK Steel announced their price increase in late January, USS followed with a $50 price increase. At that time the target for hot rolled was reported to be $650 per ton. There are no specific base prices referenced with this particular announcement. We will continue to watch for signs of specific pricing direction in the days ahead as well as reaction from other domestic mills.
John Packard
Read more from John PackardLatest in Steel Products
CRU: EC to toughen steel safeguards
The European Commission proposes cutting its steel import quota by almost half, with volumes exceeding the limit facing 50% duties. The region’s steel industry welcomes the move, while other steel-producing nations fear the consequences. CRU published an insight before this announcement, noting that more restrictive trade policy could significantly raise the cost of marginal supply […]
US and Canadian rig counts stabilize
US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.
Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."
Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.
CRU: Construction of pilot plant for green steel process starts
Voestalpine and partners have begun building an industrial-scale Hy4Smelt demonstration plant in Linz, Austria, which they hope will become key in the decarbonization of steel.