Steel Products Prices North America

Nucor, Algoma Follow with $30 Increase on Flat Rolled

November 26, 2019

Nucor’s Sheet Mill Group and Canada’s Algoma Steel have matched last week’s price increases by U.S. Steel and ArcelorMittal USA. Nucor informed customers on Monday that is has increased based prices on new orders of hot rolled, cold rolled and galvanized steel by a minimum of $30 per ton ($1.50/cwt). LIkewise, Algoma notified its flat rolled customers in the U.S. Monday that it is also raising the spot price of its hot rolled and cold rolled sheet products by $30 per ton, effective immediately.

The latest announcements by the major flat rolled producers follow on two earlier increases of $40 per ton in late October and early November, making for a total of $110 per ton, as the mills seek to maintain their upward momentum in collecting higher steel prices.

ArcelorMittal USA and AM/NS Calvert published a minimum price for hot rolled of $600 per ton, and a minimum for cold rolled and coated products of $810 per ton.

Separately, NLMK USA advised Steel Market Update of their intention to collect higher transaction prices from their customers, but they have not provided an official price increase announcement.

Steel Market Update places the current benchmark price for hot rolled steel at around $535 per ton, up from $470 in mid-October but still well short of the $600 the mills seek.

One manufacturer, commenting to Steel Market Update, expressed skepticism about the mills’ efforts to raise prices. “They are collecting increases from smaller buyers, but no large tonnage is transacting. That alone moves the CRU higher. We have tried to move our spot prices higher, but with much resistance. Customers are communicating that demand is much slower than anticipated. It’s not looking good for the first quarter. Taking a blast furnace or two out of the market will help the mills’ cause, but I just don’t feel warm and fuzzy regarding their timing.”