Prices
U.S. Steel Raises Flat Rolled Price by $40
Written by Tim Triplett
January 29, 2019
U.S. Steel is the latest mill to announce a price increase. Like Nucor, U.S. Steel notified its sales organization on Monday that its base pricing for all new flat rolled spot orders would increase by a minimum of $40 per net ton, effective immediately.
U.S. Steel’s last price change on flat rolled was also a $40 increase on Oct. 11, 2018. Since U.S. Steel and other major mills announced last October, steel prices have continued to slide. Steel Market Update data shows the average price of hot rolled on Oct. 9, 2018, was around $835 per net ton. The current price is approximately $685 per ton, an 18 percent decline.
West Coast mills California Steel Industries and USS-POSCO Industries were the first to announce $40 price increases on Monday of last week. In the coming weeks, the market will wait anxiously to see if some or all of the new price “sticks.”
Comments to Steel Market Update show a widespread differing of opinion on whether this latest round of price hikes signals a bottom for steel prices. Many are skeptical, while others are hopeful.
“My general feeling is that they will try hard to stick to their guns on this one,” predicted one buyer. “With Nucor’s announcement and U.S. Steel following suit, the rest of the market will join in and at least stop the bleeding.”
Tim Triplett
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