Nucor Sheet Mill Group got the flat rolled pricing ball rolling earlier today as they advised their customers by emailed letter that base prices will rise on new spot orders by a minimum of:
Hot Rolled: $20 per ton ($1.00/cwt)
Cold Rolled: $30 per ton ($1.50/cwt)
Galvanized: $30 per ton ($1.50/cwt)
Nucor did not advise of any specifics as to the reasoning behind the announcement but, steel buyers have been advising Steel Market Update that a number of the Nucor sheet mills have extended lead times on cold rolled and coated products. At the same time scrap prices have increased by $5-$25 per ton depending on region and product with most going up by $20 per ton.
NLMK USA also increased base prices on all “non-contractual” business by $30 per ton. In a letter sent to their customers this afternoon NLMK USA Executive Vice President, Commercial, James Banker, Jr. advised:
“NLMK USA continues to see strength in the markets we sell and lead times are extending. As a result NLMK USA will increase the price of all non-contractual business by $30 per ton. This increase applies to all products and is effective immediately. Please contact your regional sales manager if you have any questions.”
California Steel Industries (CSI) opened their March order book and at the same time announced price increases on hot rolled, hot rolled pickled & oiled well as cold rolled and galvanized products. CSI informed their customers of the change in a letter which began with: “The purpose of this letter is to inform you we are opening the March Flat Rolled order book. Additionally, due to changing market conditions, California Steel Industries is increasing transaction prices, effective immediately, by a minimum of the following…”
Hot rolled $20.00/Ton, Hot Rolled Pickled & Oiled $20.00/Ton, Cold Rolled $30.00/Ton and Galvanized $30.00/Ton.
Other mills have been quick to react advising their customers that open offers would expire by the end of the business day today.
This increase follows the $40 per ton increase announced by most mills (AK Steel advised specific base price levels) back in early December 2015. To date approximately $20 to as much as $40 per ton has been collected of the December announcement depending on the product and region of the country. The strongest products are cold rolled and coated while hot rolled has been the weaker product due to the demise of the energy business (new oil & gas drilling rigs).
John PackardRead more from John Packard
Latest in Steel Products Prices North America
Galvanized Sheet’s Premium Over Hot Rolled Hovering Around $200/Ton
The spread between hot-rolled coil (HRC) and galvanized sheet base prices has been hovering near $200 per net ton since late July, according to SMU’s latest analysis.
Plate Report: Quiet Turning to Sluggish?
The US plate market has been rather quiet over the past couple of weeks since Nucor Corp. caught many off guard with a $140-per-ton price cut.
SSAB’s Jeff Moskaluk on Wind’s Flurry of Opportunity for Steel
SMU discussed wind energy, a promising end-use market for steel, with SSAB Americas’ SVP and CCO Jeff Moskaluk.
SMU Survey: Mills Less Willing To Talk Price on Sheet, Plate More So
Steel buyers said mills are less willing to budge on spot pricing for sheet products, but plate bucked this trend, according to SMU’s most recent survey data.
AM/NS Calvert, Stelco Follow Major Sheet Mills Higher
ArcelorMittal and Stelco joined last week’s move by domestic mills to push sheet prices higher.