Steel Products
CSI Raises Steel Price by $40 Per Ton
Written by Tim Triplett
July 12, 2019
California Steel Industries is the latest mill to raise flat rolled steel prices. In a letter to customers on Wednesday, the Fontana, Calif.-based steelmaker said transaction prices for hot rolled, P&O, cold rolled and galvanized steels would increase by $40 per ton ($2/cwt) effective immediately.
CSI’s move follows on similar announcements this week from Nucor, ArcelorMittal, USS-POSCO Industries, U.S. Steel and NLMK USA. The nation’s leading steel producers have announced two price increases in the past two weeks totaling $80 per ton in the hope of turning around a year-long decline in steel prices. The benchmark price of hot rolled steel, currently around $535 per ton, is down 40 percent from its $910 peak this time last year.
CSI is an opponent of the Trump administration’s Section 232 tariffs on steel imports. As a re-roller, CSI does not produce its own steel, but rather relies on semi-finished steel purchased from other countries. With an adequate supply of slabs, CSI has the capacity to produce 2 million tons per year of flat-rolled sheet and ERW pipe.
Tim Triplett
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Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.