Nucor, Arcelor Mittal, NLMK, CSI Announce $30 Increase on Flat Rolled

A little later this afternoon, ArcelorMittal USA followed the Nucor lead and took their hot rolled, cold rolled, galvanized and Galvalume steel prices up by the same $30 per ton. The AM increase came via email from the regional salespeople to their customers.

Just before 5 p.m. today, NLMK USA advised their customers that their spot base pricing would be increased by $30 per ton, effective immediately.

Shortly after 5 PM ET California Steel Industries (CSI) announced the opening of the balance of their September order book. In the process they advised their customers of their intention to raise transaction prices by $30 per ton.

Steel buyers had mixed emotions about the increase announcements when approached by Steel Market Update this afternoon.

When asked if the price increases would “stick,” a Midwest service center told us, “What buyer would admit on Day 1 that it would stick…ha.” He went on to say, “Hard to pay $32-$34 for spot when contract pricing is $29.50-$30.”

SMU asked a steel mill that did not yet make a price announcement if they would follow and if the price increase would stick. “We were on the sidelines. No new pricing after last week. I guess our customers felt pretty strongly that a price increase was coming and booked rather healthily last week. We will evaluate the market and see what happens. I think pricing will stick and that we are on the cusp of more increases for Q4, assuming our baseline scenarios of inventory drawdowns during the balance of Q3.”