Prices
Flat Rolled Mills Join in on $40 Price Increase
Written by Tim Triplett
October 27, 2019
Four more mills–Nucor, U.S. Steel, USS-Posco and Algoma Steel–raised prices on their flat rolled products by $40 per ton ($2/cwt) Friday, following on similar announcements by ArcelorMittal and NLMK USA the day before. The mills are hoping to reverse the slide that has taken the benchmark price of hot rolled steel from more than $700 per ton to less than $500 per ton since the beginning of the year.
Nucor’s Sheet Mill Group informed customers Friday that the base price of its hot rolled, cold rolled and galvanized products would increase by $40 per ton, effective immediately.
U.S. Steel notified its North American Flat-Rolled Sales Organization Friday that base pricing for new spot orders of all flat rolled products would increase by a minimum of $40 per net ton. Pricing extras, as published, continue to apply.
USS-POSCO Industries (UPI) also added $40 to the base price for its hot rolled P&O, cold rolled and galvanized steel on Friday.
Likewise, Algoma Steel notified customers in the U.S. Friday of the Canadian mill’s intent to raise the spot price of its hot rolled and cold rolled sheet products by $40 per net ton (U.S.).
The price hike by the major flat rolled mills, the first since late July, was widely anticipated in the marketplace and welcomed by most service centers who have seen the value of their inventories and profit margins erode. Even with the support of the distributors, it remains to be seen how much of the increase the mills will manage to collect, and for how long. Similar increases earlier this year produced only small, temporary bumps in spot steel prices.
Tim Triplett
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