Prices
AMUSA and NLMK USA Announce $40/Ton Price Increase
Written by John Packard
December 15, 2019
On Friday afternoon of this past week, ArcelorMittal USA began advising their flat rolled clients of their intention to raise sheet prices by $40 per ton. AMUSA customers were advised by phone and by email that base prices of hot rolled, cold rolled and coated products would increase effective immediately.
At the same time, AMUSA announced the January 2020 hot rolled order books at AMUSA and AM/NS Calvert were closed.
A little later in the afternoon, we were advised that NLMK USA was following with a $40 per ton increase of their own, although it was not known if the company intended to provide a written announcement to their customers.
In late November, ArcelorMittal USA announced specific base pricing of $600 per ton ($30.00/cwt) on hot rolled, and cold rolled and coated at $810 per ton ($40.50/cwt). If the mill is holding the line on its price announcements, this would mean the goal is for $640 per ton hot rolled ($32.00/cwt) and $850 per ton on cold rolled and coated ($42.50/cwt).
So far SMU does not see the strength of this market as one where the domestic mills can dictate specific base pricing with no negotiation. SMU had benchmark HRC averaging $570 per ton ($28.50/cwt) last week prior to the announcement by AMUSA and NLMK USA.
The $570 per ton HRC average is up $100 per ton from the low of the cycle, which occurred the week of Oct. 1.
The latest announcements are the fourth in this cycle totaling $150 per ton ($7.50/cwt).
John Packard
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