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
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I want to draw your attention to SMU’s monthly scrap market survey. It’s a premium feature that complements our long-running steel market survey. We’ve been running our scrap survey since late January. And over just that short time, it’s become a valuable way not only for us to assess where scrap prices might go but also to quantify some of the “fuzzy” indicators - like sentiment and flows - that help to put the price in context.
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I think there is an obvious case for sheet and plate prices going higher from here. That’s because, on a very basic level, the floor for flat-rolled steel prices, which is typically provided by imports, is now significantly higher than it was a week ago.
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We're about to hit 50% Section 232 steel tariffs. What could happen?