ArcelorMittal USA Sets New Minimum Base Prices for Flat Rolled Steel

ArcelorMittal USA is the latest mill to increase flat rolled steel prices, announcing new minimum base prices in a letter to customers on Monday. Effective immediately, the company set its minimum price for hot rolled sheet at $630 per short ton, and cold rolled and coated products at $800 per short ton. If the mill is able to collect those prices, that will represent an increase of more than $100 per ton over the market’s low point last month.

Market leader Nucor announced a $40 per ton increase on June 25, followed by a second $40 increase on July 9, which was matched by ArcelorMittal and the other major mills. So far, it appears the market has accepted at least part of the mills’ bid for higher prices. The industry hopes to reverse a year-long downtrend that has cut 40 percent from the price of steel, devaluing inventories and squeezing margins for both producers and distributors.