Steel Products Prices North America

ArcelorMittal Draws Line in the Sand with New Base Prices

Written by Tim Triplett


Steel Market Update sources report that ArcelorMittal USA has informed them of new, higher base prices for flat rolled steel products. Effective immediately, the base for future orders of hot rolled is $500 per ton ($25/cwt) and cold rolled and coated products have a base of $700 per ton ($35/cwt). These prices are applicable to all new spot orders and recent quotations that have not yet been accepted by ArcelorMittal or AM/NS Calvert. ArcelorMittal’s order book is now open for June.

ArcelorMittalSMU put the average price for hot rolled this week at $460 per ton ($23/cwt) and cold rolled and galvanized at $650 ($32.50).

The last price increase announcement by ArcelorMittal was on Feb. 27 when they advised their spot customers of base price levels of $620 per ton on hot rolled, and cold rolled and coated at $820 per ton. After a brief bump, steel prices drifted down for much of the first quarter before plummeting in the second half of March when the government ordered nonessential businesses to close to stop the spread of COVID-19.

With scrap prices expected to trade sideways or higher in May due to extremely tight scrap supplies, market observers were speculating that finished steel prices might begin to bottom soon. Steel Market Update changed its Price Momentum Indicator to Neutral from Lower today, as the market direction is now in a transition phase. Whether the increase sticks or fails will ultimately depend on demand, and if enough supply has been removed from the market which will keep order books tight.

Latest in Steel Products Prices North America