Product
August 13, 2013
July Flat Rolled Pricing Cycle: Prices Moved Higher
Written by John Packard
Each month Steel Market Update will update our Monthly customers regarding the pricing cycles and any changes which occurred during the month.
The month of July saw a continuation of the “up” pricing cycle which began on May 22nd when U.S. Steel announced a $50 per ton price hike. The goal for the
first price hike was to take benchmark hot rolled prices to $610 per ton ($30.50/cwt).
During June there were two price hikes which bled into the beginning of July taking benchmark hot rolled to $650-$655 per ton ($32.50/cwt-$32.75/cwt).
The last increase announcement was begun by Severstal NA on July 23rd taking base prices to $675 per ton ($33.75/cwt) on hot rolled, $775 per ton ($38.75/cwt) on cold rolled and hot dipped galvanized. Other mills made flat price announcements of $25 per ton and then Nucor came out with pricing $5 per ton ($.25/cwt) below those of Severstal.
The bottom line is the new target base price for spot hot rolled is $670-$675 per ton and $770-$775 per ton on cold rolled and coated. We are seeing some mills asking for as much as $10 per ton above these prices in their quotes to small and medium sized customers.
