Steel Products Prices North America

US Steel Announces Flat Rolled Price Increase

December 17, 2013

On Monday U.S. Steel put out a letter to their customers announcing a $20 per ton flat rolled spot price increase. The letter was from RY Kopf, General Manager North American Flat-Rolled Marketing and it read as follows:

Effective immediately, base pricing for all new Flat-rolled products spot orders is increased by a minimum of $20 USD per net ton. This increase is applicable to all open quotations and/or negotiations where an agreement is not yet concluded. Pricing extras, as published on our corporate web site, will continue to be fully applied.

Please communicate the details of this increase to our customers as soon as possible. Questions regarding this announcement should be directed to the appropriate NAFR Industry Manager or to me.

As we mentioned in Sunday night’s issue it is unusual for US Steel to make a public announcement. However, when reviewing the issues which exists at the other domestic mills it makes sense for USS to be the leader of this particular price increase announcement.

Steel buyers are telling us the USS announcement equates to essentially the same levels announced by AK Steel and Severstal NA back in early November. Hot rolled at approximately $700 per ton ($35.00/cwt), cold rolled and coated at approximately $810 per ton (base = $40.50/cwt) plus any applicable extras.