Steel Products
July Flat Rolled Pricing Cycle: Prices Moved Higher
Written by John Packard
August 13, 2013
Each month Steel Market Update will update our Monthly customers regarding the pricing cycles and any changes which occurred during the month.
The month of July saw a continuation of the “up” pricing cycle which began on May 22nd when U.S. Steel announced a $50 per ton price hike. The goal for the
first price hike was to take benchmark hot rolled prices to $610 per ton ($30.50/cwt).
During June there were two price hikes which bled into the beginning of July taking benchmark hot rolled to $650-$655 per ton ($32.50/cwt-$32.75/cwt).
The last increase announcement was begun by Severstal NA on July 23rd taking base prices to $675 per ton ($33.75/cwt) on hot rolled, $775 per ton ($38.75/cwt) on cold rolled and hot dipped galvanized. Other mills made flat price announcements of $25 per ton and then Nucor came out with pricing $5 per ton ($.25/cwt) below those of Severstal.
The bottom line is the new target base price for spot hot rolled is $670-$675 per ton and $770-$775 per ton on cold rolled and coated. We are seeing some mills asking for as much as $10 per ton above these prices in their quotes to small and medium sized customers.
John Packard
Read more from John PackardLatest in Steel Products
Domestic CRC prices edge up, import tags mixed
The price spread between US-produced cold-rolled (CR) coil and offshore products on a landed basis widened slightly in the week ended Nov. 22.
Active rig counts stable this week
US rig activity has remained in multi-year low territory since June. Drilling in Canada has edged lower across the last few weeks but remains historically strong.
Domestic HR, offshore prices decline
US hot-rolled (HR) coil prices slipped this week, while tags in offshore markets were also largely down. Thus, the price premium between stateside hot band and imports on a landed basis was relatively unchanged.
Kloeckner, SDI collaborate on aluminum plant in Mississippi
The investment is aimed at growing Kloeckner’s automotive and industrial segment in the US and Mexico.
HVAC shipments slip in September but are still trending higher
Following a strong August, total heating and cooling equipment shipments eased in September to a five-month low, according to the latest data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI).