Steel Products

USS, Nucor, NLMK, Severstal, USS/Posco, California Industries Raise Prices

January 25, 2013

U.S. Steel verbally began telling their U.S. customers of their intention of raising spot flat rolled prices by $50 per ton. Price increase letters were sent to their customers by Nucor and NLMK USA as they advised their customers of their intention of raising flat rolled spot prices by a minimum of $50 per ton. The NLMK letter also specified “all published extras apply.” The Nucor letter went to special efforts to emphasize the $50 increase was considered the “minimum” amount they anticipate collecting.

In an internal memo to their North American sales team, Severstal advised “effective immediately, our minimum published base prices are: Hot Rolled $32.50/cwt, Cold Rolled $37.50/cwt, Hot Dipped Galvanized $38.00/cwt.” Severstal also advised all published extras will apply and the new prices are effective on all new orders not yet acknowledged or confirmed.

On the West Coast we saw USS/Posco announce in writing a $45 per ton price increase on their flat rolled products. The USS/Posco letter noted the price increases were to be effective “immediately” on all new orders that had not already been acknowledged. The mill went on to tell their customers those “January or prior validated orders that have been produced and packaged but not shipped by January 31, 2013 will be subject to the increase.”

California Steel Industries (CSI) announced the opening of its March order book with higher prices. According to the letter to their customers hot rolled prices are rising by a minimum of $30 per ton, cold rolled by $45 per ton and galvanized by $45 per ton. The CSI letter states that, “Previously quoted offers that have not been confirmed and/or acknowledged in writing by all concerned parties are subject to review and re-quote.”

In the eastern portion of the U.S. it appears the goal is to get HRC prices close to $650 per ton, CRC to $750 per ton and coated product base prices to $760 per ton.