Mills Raise Flat Rolled Prices Another $50

Likewise, on Thursday, USS-POSCO Industries (UPI) raised base prices for all of its sheet products, including hot rolled P&O, cold rolled and galvanized, by a minimum of $50 per ton.

Sources tell Steel Market Update that ArcelorMittal USA has informed customers of new minimum base prices of $650 per ton for hot rolled, and $850 per ton for cold rolled and coated products, effective immediately.

Flat rolled mills have raised prices several times since May when the market began to recover from the coronavirus shutdowns. This week’s check of the market by SMU puts the current average price for hot rolled at $605 per ton, well above levels in early March prior to the COVID pandemic and up about $165 or nearly 38 percent from the low of $440 per ton in the second week of August.

Readers polled by SMU earlier this week are divided over the staying power of steel prices. “I believe the mills are poised to strike again. I believe the steel market will continue to gain strength in the fourth quarter and roll into 2021,” said one executive. “This is a short-term rising price cycle. The underlying excess supply situation is being masked by maintenance outages, the NLMK strike and additional quota restrictions on Brazil. These issues will dissipate in early Q1-2021 followed by new HR capacity, which will turn the market downward,” commented another.