Steel Mills

California Steel Opens July Order Book @ +$80

April 19, 2016

California Steel Industries (CSI) opened their July flat rolled order book this week. The mill moved prices up by $80 per ton compared to the previous month. We are investigating exactly what that means to buyers. We understand that the mill is on a strict allocation to their regular customers. We expect the mill to be sold out within one to two days.

Here is what the mill had to say to their customers:

The purpose of this letter is to inform you we are opening the July Flat Rolled order book. With the current strong demand in the market, we expect to reach our planned production capacity for July very quickly. California Steel Industries is increasing transaction prices, effective immediately, by a minimum of the following:

Hot Rolled $80.00/ton
P&O $80.00/ton
Cold Rolled $80.00/ton
Galvanized $80.00/ton

California Steel Industries reserves the right to review any previously quoted requirements that have not been placed, acknowledged or confirmed in writing. Additionally, customers are reminded that prices are subject to change at any time unless a firm price has been previously quoted and confirmed.

The letter, which was emailed to their customers, was signed by Ricardo Bernardes, Executive Vice President, Commercial of California Steel.