Steel Mills
Nucor Raises Sheet Prices by $40 Per Ton
Written by Tim Triplett
October 11, 2018
On Wednesday of this week, Nucor’s Sheet Mill Group announced a $40 per ton ($2.00/cwt) price hike on flat rolled steel products produced by the mill. The price hike affects only spot tons and not contract orders, which tend to be tied to a flat rolled steel price index.
In an Oct. 10 letter to customers, Nucor said that base prices on hot rolled, cold rolled and galvanized steel products would all increase by $40 per ton, effective immediately.
The steel mills have been largely silent on price changes for the past few months. Even though the last price increase announcement publically made was in late January, the domestic mills continued to push prices past the $705 per ton SMU’s index showed when Nucor last announced an increase (Jan 26, 2018).
Over the past couple of months, flat rolled steel prices have been on a downward slide since peaking around $915 per ton in late July. The current HR price is $835 per ton, according to Steel Market Update data.
Other mills may choose to sit and wait to see how the market reacts to the announcement. However, there are some mills that have begun to raise spot offers, reflecting a change in the pricing stance of that mill – even if they have not yet made an announcement.
Steel Market Update has moved its Price Momentum Indicator from Lower to Neutral, which is our policy when a price announcement has been made. We will continue to watch the markets carefully to see if prices begin to move higher (or not) and we will adjust our indicator once we have a better feel for the trend.
Tim Triplett
Read more from Tim TriplettLatest in Steel Mills
AISI: April mill shipments fall, sheet down YTD
US steel mills saw a decline in shipments from March to April.
Hybar rolls first rebar, ramping up Arkansas mill commissioning
The startup steelmaker produced its first rebar at its greenfield steel mill in Osceola, Ark., marking a key milestone by completing construction in 22 months.
Goncalves: Despite higher tariffs, two Cliffs mills to remain idled
Cleveland-Cliffs Chairman, President, and CEO Lourenco Goncalves said he would keep one mill idled and still plans to idle another despite increased protections from Section 232 tariffs doubling to 50%.
Trump says Section 232 tariff on steel, aluminum to double to 50% at Pennsylvania rally celebrating Nippon-USS deal
At a rally celebrating a “planned partnership” between U.S. Steel and Nippon Steel, President Trump announced higher tariffs on steel and aluminum imports into the United States, and revealed few more details on Nippon’s investment in USS’ operations.
CRU: Trump hails a partnership of Nippon with USS
In a social media post, President Donald Trump said a planned partnership between Nippon Steel and U.S. Steel will add $14 billion to the US economy and ensure USS remains headquartered in Pittsburgh.