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.
John PackardRead more from John Packard
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