AMUSA and NLMK USA Announce $40/Ton Price Increase

A little later in the afternoon, we were advised that NLMK USA was following with a $40 per ton increase of their own, although it was not known if the company intended to provide a written announcement to their customers.

In late November, ArcelorMittal USA announced specific base pricing of $600 per ton ($30.00/cwt) on hot rolled, and cold rolled and coated at $810 per ton ($40.50/cwt). If the mill is holding the line on its price announcements, this would mean the goal is for $640 per ton hot rolled ($32.00/cwt) and $850 per ton on cold rolled and coated ($42.50/cwt).

So far SMU does not see the strength of this market as one where the domestic mills can dictate specific base pricing with no negotiation. SMU had benchmark HRC averaging $570 per ton ($28.50/cwt) last week prior to the announcement by AMUSA and NLMK USA.

The $570 per ton HRC average is up $100 per ton from the low of the cycle, which occurred the week of Oct. 1.

The latest announcements are the fourth in this cycle totaling $150 per ton ($7.50/cwt).