Steel buyers are scratching their heads while steel mills begin to line up announcing identical $50 per ton price increases on all flat rolled products.
AK Steel was the first to follow U.S. Steel when they put out a press release advising their customers of their intention to raise spot prices by a minimum of $50 per ton, effective immediately with all new orders.
Nucor followed with a price increase letter to all of their customers advising base prices would be rising by a minimum of $50 per ton on hot rolled, cold rolled and galvanized. Nucor also advised they “reserved the right to review and requite any offers that are not confirmed with either a Nucor sales acknowledgement or written acceptance by both parties.”
By late in the day on Wednesday and as we moved into Thursday two mills put base prices to the announcements. ArcelorMittal called for hot rolled at a minimum of $650 per ton base while cold rolled and coated base prices where to start at $760 per ton. Then Severstal presented an internal memo to their North American sales team which spelled out their “minimum pricing guidelines.” Severstal put the hot rolled base at a minimum of $32.50/cwt ($650 per ton), cold rolled at $38.00/cwt ($760 per ton) and hot dipped galvanized at $38.00/cwt ($760 per ton).
On the West Coast, California Steel Industries (CSI) sent a letter to their customers advising them, “Due to changing market conditions, effective immediately, California Steel Industries is increasing transaction prices by a minimum of the following: Hot Rolled $30.00/ton, P&O $30.00/ton, Galvanized $50.00/ton, Cold Rolled $50.00/ton…”
On Tuesday, Steel Market Update had our benchmark hot rolled range at $580-$620 with an average of $600 per ton ($30.00/cwt). We understand the CRU hot rolled benchmark is within $1 of ours having been posted on Wednesday morning.
John PackardRead more from John Packard
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