Steel Mills

Nucor Increases RMS for Scrap-Linked Sheet Deals by $190/ton
Written by Michael Cowden
March 25, 2022
Nucor has increased the raw materials surcharge (RMS) for customers buying steel sheet on terms linked to scrap prices.
The Charlotte, NC-based steelmaker said its RMS – based on prices for busheling scrap – would be $515 per ton ($25.75 per cwt) in April, a $190-per-ton increase from prior levels.
The higher RMS will be applied starting with orders scheduled to be delivered the week ending April 9. And it will remain in effect through April 30, the company said in a letter to customers dated Monday, March 21.
Nucor had already announced significant price increases for other sheet customers buying on terms not linked to scrap prices. Those customers have seen three increases totaling $275 per ton over approximately the last month.
Nucor’s higher RMS surcharge comes after ferrous scrap recorded what might be its biggest month-over-month gains ever in March. And higher scrap prices are expected again next month on the back of increased pig iron and slab costs stemming from the war in Ukraine.
Russia, Brazil and Ukraine had been the primary pig iron suppliers not only to US EAF sheet mills but to EAF sheet mills in Turkey and other regions as well. Ukrainian cargoes have been effectively stopped because of the war. Some customers are reluctant to buy Russian material but have few alternatives because Brazil alone cannot fill the gaps left by the fighting.
That matters when it comes to prime scrap prices because imported pig iron was previously a reliable way for mills to keep a lid on scrap tags.
A similar situation is playing out on the slab side. US mills have relied heavily on Brazilian slab since Brazil agreed to a quota in exchange for exemption from Section 232 tariffs of 25%. But there is a limit to how many tons Brazil can supply to the US and the EU, both of which have seen sharply higher steel prices as a result of the war in Ukraine.
By Michael Cowden, Michael@SteelMarketUpdate.com

Michael Cowden
Read more from Michael CowdenLatest in Steel Mills

U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.

August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.

TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.

Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.

ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.