Steel Products Prices North America

Plate Mills Follow with Second Price Hike

August 13, 2019

North America’s plate mills have announced their second round of price increases in less than three weeks, seeking another $40 per ton ($2/cwt). Nucor’s Plate Mill Group was the first to inform customers of the change on Friday, prompting similar announcements by most other mills on Monday.

SSAB Americas advised customers it is increasing transaction prices by a minimum of $40 per ton effective immediately for all new non-contract orders of as-rolled mill plate, cut-to-length plate >72”, hot rolled coils >72”, as well as normalized plate and quenched and tempered plate. “SSAB continues to monitor market conditions in order to better realize the value our products bring to our customers,” SSAB’s letter stated.

Likewise, in its letter to customers, Canada’s Algoma Steel said it is raising the prices of as-rolled and heat-treated plate products by $40 per ton U.S. effective immediately on new spot orders.

Sources tell SMU they were informed of a comparable increase by ArcelorMittal USA.

Steel Market Update data shows the current average spot price for plate at around $790 per ton ($39.50/cwt), down from $820 per ton last week, even after the first round of price increases. Plate prices have declined from more than $1,000 per ton at the beginning of the year, and the mills hope to reverse that trend.

But as one buyer told Steel Market Update: “There’s no evidence that actual increases have taken hold. But there was a ‘surge’ period where the mills allowed orders to be placed shortly after the announcement to shore up their order book.”