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CSI, UPI Announce $40 Price Hike on Flat-Rolled Steel

January 22, 2019

California Steel Industries (CSI) and USS-POSCO Industries (UPI) announced price increases of $40 per ton on Monday, hoping to stem the slide in flat-rolled steel prices that began last summer. The announcements do not include plate.

In its Jan. 21 letter to customers, CSI stated that it is opening its order book for flat-rolled orders placed for shipment in March. Additionally, the West Coast re-roller said it was increasing transaction prices, effective immediately, by a minimum of $40 per ton on hot rolled, P&O, cold rolled and galvanized products. All pricing is subject to slab availability and mill capacity.

Likewise, UPI notified its sheet customers that it is raising based prices for all hot rolled P&O, cold rolled and galvanized products by $40 per ton effective immediately on all unconfirmed orders. Published price book extras continue to apply.

The last time these mills announced a price change was back on Oct. 11, when they also sought to raise flat rolled by $40 per ton. Hot rolled steel prices continued to weaken in the fourth quarter and into the new year, declining by about $120 to last week’s price around $685 per ton FOB Mill East of the Rockies (prices on the West Coast may differ), according to Steel Market Update data.

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Given the steep declines in steel prices that began last August, the market has been expecting the mills to take some action, although some analysts question the timing. With mill lead times short, scrap prices down in January and JSW’s Mingo Junction restart beginning to add supply to the market, the likelihood of the mills collecting this first price hike of 2019 is uncertain.