Steel Mills
Nucor Looks to Raise Sheet Prices by $125/ton
Written by Michael Cowden
March 16, 2022
Nucor aims to increase base prices for steel sheet by at least $125 per ton ($6.25 per cwt) effective immediately.
“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 a letter to customers dated Wednesday, March 16.
The latest price hike comes after the Charlotte, N.C.-based steelmaker raised price by $100 per ton on March 7 and by $50 per ton on Feb. 25.
The result: North America’s largest steelmaker has announced sheet price hikes of a combined $275 per ton in less than a month.
Higher prices stem in large part from supply disruptions caused by the war in Ukraine, which began after Russian forces invaded on Feb. 24. Raw material prices have also risen sharply.
Case in point: SMU’s average hot-rolled coil price jumped to $1,260 per ton this week ($63 per cwt), up $210 per ton (20%) from $1,050 per ton last week. That was the biggest week-over-week gain we’ve ever recorded – and by a wide margin too.
While some buyers think it is only a matter of time before hot-rolled coil prices hit $1,400-1,500 per ton, others question whether such dramatically higher prices are sustainable.
There are also some indications there is not the same level of panic buying that there was in the first half of last year – another period of skyrocketing steel prices.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
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