Nucor has joined Cleveland-Cliffs Inc. in increasing base prices for steel sheet by at least $50 per ton ($2.50 per cwt).
The move is effective with all new orders, the Charlotte, N.C.-based steelmaker said in a letter to customers on Friday, Feb. 25.
“We reserve the right to review and re-quote any offers that are not confirmed with either a Nucor sales acknowledgement or written acceptance by both parties,” the company said in the letter.
The price hike from North America’s largest steelmaker comes after Cleveland-based Cliffs said on Monday that it was indefinitely idling a blast furnace and increasing prices by $50 per ton effective with April orders.
SMU on Tuesday changed is Price Momentum Indicator to neutral to see what market reaction to any attempted price increases would be.
Hot-rolled coil prices currently stand at $1,020 per ton ($51 per cwt), down 36% from the $1,600 per ton at the beginning of the year and down 48% from a 2020 high of $1,955 per ton recorded in September, according to SMU’s interactive pricing tool.
Nucor last announced a price hike – also of $50 per ton – on Sept. 30, 2020, according to SMU’s mill price increase calendar. HRC prices at the time were at $605 per ton.
By Michael Cowden, Michael@SteelMarketUpdate.com
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