Steel Mills
Severstal NA Counters with $20 per ton Announcement
Written by John Packard
November 7, 2013
Released short after the AK Steel announcement, in a letter to their customers Severstal North America (SNA) increase minimum spot flat rolled steel base prices by $20 per ton. The $20 per ton assessment is based on the difference between the company’s October 1, 2013 announcement and what was announced today.
The letter begins as follows:
“Winter is creeping quickly upon us, but the steel market is getting hotter. Raw materials continue to move upwards, and finished steel bookings have improved significantly in recent weeks. Economic activity in the NAFTA region is strong. However, in response to capacity restrictions and cost pressures from raw materials, we are increasing our base prices as follows”
Hot Rolled $35.00/cwt $700/nt
Cold Rolled $40.50/cwt $810/nt
Galvanized $40.50/cwt $810/nt
The letter went on to advise, “The new prices are effective for all orders not acknowledged or confirmed by Monday, November 11th, at 8 AM Central Time.”
The letter was signed by Sachin Shivaram, Vice President Commercial for Severstal NA.
What was missing from the latest letter was the option Severstal had been making to their customers for a “firm price option” or FPO.
John Packard
Read more from John PackardLatest in Steel Mills
August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.
TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.
Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.
ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.
AISI: Raw steel production ticks back down
US raw steel output declined last week after increasing the week prior, according to the latest data from the American Iron and Steel Institute (AISI). Output has see-sawed from week to week since mid-August. Still, it has remained historically strong over the past four months and has held near multi-year highs since June. Domestic mills […]