Atlas Leads Tubers Up $100 Per Ton, Cites Higher Costs

Atlas Tube, the largest HSS producer in North America, also said all orders on its books would be protected from the price hike through May 28.

The latest price increase means the division of Zekelman Industries announced two price hikes of $100 per ton each in April. The first was announced on April 13.

The combined $200 per ton in price hikes roughly matches increases in hot-rolled coil prices. Coil is the substrate used to make welded tubulars such as HSS.

Steel Market Update does not formally track pipe and tube prices.

SMU’s benchmark HRC price stands at $1,440 per ton ($72/cwt), up $90 per ton from $1,330 per ton the beginning of the month. And some sources have reported new HRC prices as high as $1,520-1,540 per ton – or roughly $200 per ton above HRC prices on April 1.

Other mills quickly followed Atlas Tube’s announcement on Friday afternoon.

Nucor’s tubular products division also increased prices for HSS, pipe, and mechanical and piling products by $100 per ton effective immediately.

“This increase is a result of rising raw material costs, strong demand, and volatility of transportation costs,” the steelmaker said in a letter to customers.

Like Atlas, Nucor will shield existing orders from the price hike through May 28.

And EXLTUBE said it it too would increase prices for A500 and A513 products by at least $100 per ton.

“This increase is due to escalating substrate costs and limited supply of finished goods,” the company said in a letter to customers.

EXLTUBE will also price protect shipments through May 28.

By Michael Cowden, Michael@SteelMarketUpdate.com