Following on a similar move by the plate mills earlier in the week, flat rolled mills announced price changes Wednesday and Thursday ranging from $40 to $60 per ton.
Nucor’s Sheet Mill Group notified customers today, Aug. 27, that it has increased base prices on new orders of hot rolled, cold rolled and galvanized steel by $40 per ton ($2.00/cwt).
U.S. Steel and its sister company USS/Posco Industries (UPI) informed customers Wednesday that they also have raised base prices on all new spot orders of flat rolled steel products by $40 per ton. Published price book extras continue to apply.
California Steel Industries told customers Wednesday that its October order book is now open and that due to changing market conditions it has increased transaction prices by $50 per ton ($2.50/cwt) for hot rolled, P&O and galvanized, and $60 per ton ($3.00/cwt) for cold rolled. Due to rising zinc costs, CSI also revised its galvanized coating extras effective beginning with orders placed in October (see related article).
SMU sources were expecting the announcement and feel it’s likely the market will support it. “They will get all of this. Demand is really picking up,” said one manufacturer. “Nucor’s announcement, for sure, was based on the expected jump in scrap prices next month. By announcing now, they can try and influence CRU reporting higher next week to establish a higher set point for September,” added one service center executive.
Nucor last attempted to raise flat rolled prices in the third week of May, while U.S. Steel, UPI and ArcelorMittal USA last announced in the third week of July, but those moves proved premature and had limited effect as the market struggled with the pandemic. CSI’s last change was a $40 increase in January prior to the coronavirus.
Tim TriplettRead more from Tim Triplett
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