Steel Products

ArcelorMittal Raises Prices – Complains of “Manipulation and Discounting of the CRU”

January 25, 2013

ArcelorMittal raised flat rolled spot prices on Wednesday and in the process took a shot at the rest of the industry (and perhaps themselves?) when they identified, “The market manipulation and discounting of the CRU has had a dampening effect on industry spot prices.” They then used the most recent index benchmark plus $45 to obtain their new base pricing on hot rolled coil ($650 per ton). This is quite different from how mills have announced price increases in the past, normally choosing to specify either only a specific dollar amount of the increase or a finished base price.

Here is the text of the ArcelorMittal memo leaked to the industry:

“The market manipulation and discounting of the CRU has had a dampening effect on industry spot prices. As a result, effective immediately, our minimum base price on all new hot roll orders will be $605 plus $45, or $650/ton. Our cold roll price will be $705 plus $45, or $750 per ton, and spot HDG will be $715 plus $45, or $760 per ton. This pricing is in effect until February 6, 2013.”