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.
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
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