Final Thoughts
Cliffs Announces $50/ton Sheet Price Hike in Leading Move
Written by Michael Cowden
December 13, 2022
Cleveland-Cliffs Inc. aims to increase spot market base prices for flat-rolled steel by at least $50 per ton ($2.50 per cwt) effectively immediately.
The steelmaker announced the price hike, a leading move, in a press release on Tuesday, Dec. 13. The increase applies equally to hot-rolled, cold-rolled and coated products.
The company noted that the hike would bring its minimum base price for hot-rolled coil to $750 per ton.
“This additional price increase is in response to market feedback following the company’s November price increase, as well as improving dynamics in the raw materials and distribution markets,” Cliffs said in the release.
The Cleveland-based flat-rolled steelmaker led a round of $60-per-ton price hikes the week after Thanksgiving.
The current increase come after scrap prices settled higher in December and amid expectations that scrap will be up again in January. It also follows an uptick in sheet lead times.
Market participants had told SMU that mills might roll out another round of price hikes ahead of the holidays because producers felt like momentum was on their side, because costs were inching up, and despite uncertainty around 2023 demand. They also said others were likely to follow Cliffs.
At least one producer already has. NLMK USA announced that it would increase base prices by at least $50 per ton on all products. “Orders not yet received and not yet confirmed are subject to this increase,” the company said in a letter to customers on Tuesday.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Final Thoughts
Final Thoughts
Sure, demand isn’t as good the market had hoped it would be earlier this year. But assuming it doesn’t fall of a cliff, buyers will have to restock at some point. And that might give domestic mills enough leverage to raise prices again.
Final Thoughts
While I would anticipate market sentiment to pivot and improve if all the questions around tariffs were answered, that still leaves us with a few other factors.
Final Thoughts
Let's see what SMU survey respondents are saying about Trump's tariffs.
Final Thoughts
The Tariff Town amusement park ride shows no signs of slowing down.
Final Thoughts
Cliffs came tantalizing close to buying U.S. Steel in 2023. There were rumors in 2024 that Cliffs might buy NLMK USA before it ultimately purchased Stelco for $2.5 billion in November of last year. Who would have thought that asset sales would have been the focal point of discussion just six months later?