Late on Monday, ArcelorMittal sales people began informing their customers by email of their intention to raise flat rolled steel prices by $20 per ton ($1.00/cwt). The increase was to be effective with orders taken for June production and beyond.
In an email seen by Steel Market Update, ArcelorMittal explained their reasoning for taking prices higher at this point in time:
“As a result of this recent improvement in volume and an obvious need for price relief from the past six months of price erosion, effective immediately all new orders accepted for June production and beyond will be increased by a minimum of $20/ ton above our May Transaction price levels.”
AM did not define exactly where that put their prices but, in conversation with AM customers we expect them to be within $20 per ton of $460 per ton.
ArcelorMittal customers advised SMU that their lead times are into June at all facilities except Riverdale and Calvert.
Nucor, NLMK USA and North Star Bluescope
A number of other mills have reacted to the ArcelorMittal announcement with either verbal or written announcements of their own.
We learned that Northstar Bluescope (NS) had been advising their customers of their intention to collect $465 per ton on new orders. This goes back to late last week.
This morning, Nucor sales people began telling their customers (verbally) that their base prices would be $23.00/cwt on hot rolled and $29.00/cwt on cold rolled and galvanized. However, later in the day Nucor came out with a letter to their customers which did not provide specific base prices but instead reverted to $20 per ton price increase minimums on hot rolled, cold rolled and galvanized.
Later in the morning NLMK USA put out a letter which stated:
“Due to improving market demand and extending lead times, NLMK USA is implementing the below minimum bases prices.
Hot Roll $24.00 /cwt
Cold Roll $30.00/cwt
These prices are effective immediately for new spot orders. Please contact your regional sales manager if you have any questions.”
The NLMK USA letter was signed by James Banker, Executive Vice President, Commercial.
We will discuss the reaction from the steel community about the price announcements in a separate article in tonight’s newsletter.
As a side note, Mr. Banker of NLMK USA will be one of our mill panelists at this year’s Steel Summit Conference in Atlanta (September 1 & 2, 2015).
John PackardRead more from John Packard
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