Steel Products Prices North America
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/4c4337ba54c07b6c0d81d8037b79b7ee.jpg)
CSI Surprises Market with a $120 Price Hike
Written by Tim Triplett
February 27, 2018
California Steel Industries (CSI) surprised customers with a whopping $120 per ton price increase on all its flat rolled products on Monday, the same day that its main West Coast competitor USS-POSCO (UPI) informed customers that its April order book is now closed.
In its Feb. 26 letter to customers, CSI announced that it’s April order book is now open. “Due to changing market conditions, CSI is increasing transaction prices, effective immediately, by a minimum of $120 per ton on hot rolled, hot rolled pickled and oiled, cold rolled and galvanized. All pricing is subject to slab availability and mill capacity. Due to the limited availability, your regional sales manager will provide you with available tonnage in addition to your detailed pricing,” the letter stated.
This is the sixth and by far the largest single price increase announced by CSI since October. The other five ranged from $30 to $60 per ton each. All total, including the latest increase, CSI has raised the price of hot rolled by $310 per ton, galvanized by $290 per ton and cold rolled by $280 per ton in about four months.
The domestic flat rolled mills have all been raising prices steadily since October, but a single price hike of $120 is almost unheard of and speaks volumes about today’s unusual market conditions. With an announcement of new tariffs or quotas on steel imports expected soon from the Trump administration under Section 232, the market appears to be on hold with little foreign steel being offered into the West Coast market.
Steel Market Update sources expressed shock not only at the size of CSI’s latest increase but the push-out of lead times on some orders and talk of limiting the tons available to some customers. “CSI’s price increase announcement is a harbinger of things to come,” predicted one Texas-based service center. “It’s only a matter of time before they decide to serve West Coast customers to the detriment of other geographic locations due to the fact that Asian imports are cut off.”
The service center executive predicts the mills, both EAF and integrated producers, will put non-contract customers on allocation at an accelerated pace, and service centers’ tonnage will be limited. If President Trump follows the Commerce Department recommendations to further restrict imports, it could cause a serious steel shortage, leading to inflation, offshoring of manufacturing and unemployment at the nation’s ports. If the NAFTA negotiations block steel from Canada and Mexico, the damage to the economy will be even worse, he said.
“The market seems very close to shifting to an availability mode, rather than a price focus,” added a service center executive from the Midwest. He believes government action meant to push the industry operating rate above 80 percent could send flat rolled production even higher, perhaps leading to hot rolled prices of $1,000 per ton or more.
As the day wore on steel buyers have been advising SMU of adjustments to the tonnages being allowed to be purchased with some suggesting they were being cut by 50 percent…
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/tim-triplett.jpeg)
Tim Triplett
Read more from Tim TriplettLatest in Steel Products Prices North America
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: Longs pricing trends diverge in North, South America
Most longs prices in the US were unchanged this month, except for rebar, which declined by $1.50/cwt ($30/short ton) m/m. While end-use demand is stable, inventories are well-stocked, keeping purchases limited. Domestic availability is sufficient to meet current demand, hindering the appetite for imported material. Meanwhile, prices for scrap remained under pressure in June, with […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor cuts plate prices by $125/ton, cites ongoing competition
Nucor Corp. announced that its plate mill group would cut prices for as-rolled, discrete, and normalized plate with the opening of its August order book.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor cuts HR price for fourth straight week
Nucor lowered its consumer spot price (CSP) for hot-rolled (HR) coil by another $10 per short ton (st) for the first week of July. The steelmaker said in a letter to customers on Monday that its CSP base price for the week will be $670/st for all of its sheet mills with the exception of California Steel Industries (CSI).
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Cliffs_logo2.2.png)
Cliffs sets $720/ton HR price with opening of August books
Cleveland-Cliffs on Tuesday announced its monthly hot-rolled (HR) coil price of $720 per short ton (st) with the official opening of its August order book. The rate is down from last month’s price of $800/st.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: Demand weakness continues to weigh on global sheet markets
Demand has remained persistently weak across the globe for sheet steel, weighing on prices. US HR coil prices fell the furthest this week as high-volume, low-priced deals were transacted as mills looked to fill order books and competed with one another amid relative demand weakness. Meanwhile, European prices were also down due to low demand […]