SSAB Holds RMS Even as Scrap Prices Decline

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