Steel Products Prices North America
Distributors Not Surprised by Nucor’s Plate Announcement
Written by Tim Triplett
August 15, 2017
Nucor’s Plate Group announced a $30 price increase on Aug. 14, citing escalating raw material and input costs. Nucor will increase transaction prices on all new orders for carbon, alloy and heat-treated plate by $30 per ton, effective immediately.
Plate distributors responding to SMU’s request for comment are generally supportive of Nucor’s move.
“The plate announcement was strictly based on higher scrap costs at Nucor. We are also dealing with a falling market this summer ($37.00/cwt May to $34.00/cwt August). We are all hoping the increase will form a bottom. Inventories are strong and demand is weak,” said one plate distributor.
“No doubt the plate market is waiting for infrastructure to take off. Plate is underpriced compared to sheet and needs to find a higher number. Avoiding a slide is just as important with scrap climbing. They need the boost and I believe will go for it,” said a service center executive in the Midwest.
“The price announcement is a lever the mills are using because of the slow Section 232 rollout process. Demand is still strong and as always there is price movement up and down. We have noticed low supplies at some of the broker types in the business,” added another service center exec.
Below is a copy of the letter emailed to customers by the Nucor Plate Group on Monday, Aug. 14.
Tim Triplett
Read more from Tim TriplettLatest in Steel Products Prices North America
HRC-galvanized price gap edges higher
The premium galvanized coil carries over hot-rolled coil (HRC) coil has marginally widened in recent months. As of Sept. 16, the spread between these two products reached a three-month high of $175 per short ton (st), though it is still low by historical standards.
SMU Price Ranges: HR slips, hopes for Q4 rebound still standing
SMU’s price ranges were mixed again this week as the market continues to seek a floor amid industry hopes for a Q4 rebound.
Nucor’s hot band list price holds at $875/ton
Nucor held its hot-rolled coil list price flat again this week, according to its Monday, Sept. 15 consumer spot price (CSP) notice.
Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.
SMU Price Ranges: Some predict bottom is near as big discounts dry up
Sheet prices were mixed this week as some mills continued to offer significant discounts to larger buyers while others have shifted toward being more disciplined, market participants said.