Steel Mills
SSAB Holds RMS Even as Scrap Prices Decline
Written by David Schollaert
July 14, 2022
SSAB Americas will hold its raw materials surcharge, or RMS, on #1 Heavy Melting Scrap (HMS) unchanged effective July 31 on all spot orders and all contractual agreements.
The Mobile, Ala-based steelmaker said the sideways move was due to a declining HMS #1 price tag, which is currently valued at $351 per gross ton, and below the $465 per gross ton threshold.
The note applies to both US and Canadian customers, who will see a $0.00 per net ton surcharge in August.
SSAB implemented a raw materials surcharge, or RMS, in March to mitigate potential losses due to “extraordinary market pressures brought on by recent global events” – a response to the war in Ukraine.
The steelmaker is basing the calculation of the RMS on the SteelBenchmarker™ #1 HMS index value, USA, East of the Mississippi as published on the Thursday following the second Monday of the month.
SSAB said any amount exceeding the threshold will be applied at the time of shipment, but when the index is below the threshold, no surcharge will be applied.
SSAB Americas is a subsidiary of Swedish steelmaker SSAB. The company operates plate mills in Mobile and in Montpelier, Iowa.
Plate prices have been largely unchanged over the past four weeks, bucking the trend seen in domestic sheet prices. Plate prices are averaging $1,800 per ton, according to SMU’s latest check of the market on Tuesday, July 12, at nearly twice the premium to hot-rolled coil (HRC) tags.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Mills
Cliffs unveils new hydrogen-powered stainless line in Ohio
CEO Lourenco Goncalves, flanked by state leaders and union reps, touted the project as proof that US manufacturing is not only alive, but also advancing.
Cliffs idles Steelton, Riverdale, and Conshohocken operations
Cliffs has idled facilities in Riverdale, Ill., and Conshohocken and Steelton, Pa.
Radius loss narrows, volumes climb in ‘healthy’ West Coast market
Stronger steel demand in the Western US, rising scrap flows, and improved rolling mill utilization drove sequential gains for Portland, Ore.-based Radius Recycling.
AISI: Raw steel production backs off multi-year high
US raw steel output edged lower last week after hitting a multi-year high in mid-June, according to the American Iron and Steel Institute (AISI).
Private equity firm Atlas Holdings to acquire Evraz North America
Atlas Holdings said it has signed a definitive agreement to acquire Evraz North America (Evraz NA). The Greenwich, Conn.-based private equity firm said it expects the deal for the Chicago-based steelmaker to close in the second quarter of 2025 subject to various closing condition.