Prices
ArcelorMittal Starts Round Three of Price Increases
Written by John Packard
November 15, 2016
On Monday ArcelorMittal USA announced their third flat rolled steel price increase in less than a month. The mill informed their customers of their intention to raise base prices on all flat rolled products.
On Tuesday NLMK USA followed the AM lead while Nucor and AK Steel came out with a $40 per ton price increase announcements.
The first AM price increase was on October 25th for $30 per ton, followed by a second increase taking base prices to $520 per ton on hot rolled and $740 per ton on cold rolled and coated. The second price increase was one week ago (November 7th).
Today, AM took base prices up by another $40 per ton on all products.
The increase was sent to customers via email on Monday evening. Here is the text of the notice sent to most customers (st = short ton or 2,000#):
Effective immediately, AMUSA will be increasing our minimum base prices on sheet products as follows:
Hot Rolled: $560/st
Cold Rolled: $780/st
Hot Dipped Galvanized: $780/st
Galvalume: $780/st
These prices are applicable to all new orders and recent quotations that have not yet been accepted and acknowledged with an AMUSA or AM/NS Calvert Order Acknowledgement. We reserve the right to change any outstanding quotations or pending orders without further notice.
Our books are also now opened to receive orders for production and shipment in January 2017.
SMU Note: We believe the other domestic mills will raise prices as the week progresses. This includes reviewing the NLMK USA announcement of new coating extras which were also released this evening (we have a separate article about that in Tuesday evening’s newsletter).
John Packard
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