Steel Products Prices North America
ArcelorMittal USA Sets New Base Price Minimums
Written by John Packard
May 3, 2016
In an email to their customers earlier today, ArcelorMittal USA became the first mill to announce new base price minimums on flat rolled steel with the opening of their July order book. The new steel price minimums set by AM are as follows:
Hot Rolled = $610 per ton ($30.50/cwt)
Cold Rolled = $800 per ton ($40.00/cwt)
Galvanized/Galvalume = $800 per ton ($40.00/cwt)
Over the past few working days Steel Market Update was aware of at least one mill setting spot prices without an official announcement at $600 per ton on hot rolled and $800 per ton on cold rolled and coated.
An ArcelorMittal USA customer told SMU early this afternoon that they were expecting a price increase and the question being asked within AM was what should the spread be between hot rolled and cold rolled/coated base pricing? With this announcement the spread is being set by ArcelorMittal at $190 per ton ($9.50/cwt).
To put this into historical perspective, for many years the typical spread ranged from $100 to $140 per ton. However, in light of the weakness in the energy markets, in particular coupled with strength in the cold rolled and coated markets, the spread has been widening.
SMU anticipates the other domestic mills will follow with price increase announcements of their own. This is now the 6th round of increase announcements in the current market cycle which began on December 9, 2015.
John Packard
Read more from John PackardLatest in Steel Products Prices North America
Thin demand keeps plate prices hovering at lowest levels since February
Participants in the domestic plate market say spot prices appear to have hit the floor, and they continue to linger there. They say demand for steel remains thin, with plate products no exception.
SMU Price Ranges: HR crawls back to $800/ton
SMU’s HR price stands at $800/st on average, up $5/st from last week. The modest gain came as the low end of our range firmed, and despite the high end of our range declining slightly.
SMU successfully completes IOSCO review
SMU has successfully completed an external review of all our prices. The review has concluded that they algin with principles set by the International Organization of Securities Commissions (IOSCO).
Domestic plate prices could heat up despite so-so demand, market sources say
Some sources also speculated that plate could see further price increases thanks to modest but steady demand, lower imports, mill maintenance outages, and end markets less immediately affected by tariff-related disruptions.
SMU Price Ranges: HR holds, galv slips amid competing market narratives
SMU’s sheet and plate prices see-sawed this week as hot-rolled (HR) coil prices held their ground while prices for galvanized product slipped.