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.
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