Steel Mills
CSI Opens September; Sources Say Offers Up ~$200/ton
Written by Michael Cowden
June 24, 2021
California Steel Industries (CSI) has opened its flat rolled order book for September. The West Coast slab converter also has increased prices by approximately $200 per ton ($10/cwt), according to market participants.
“The purpose of this letter is to inform you that CSI’s September flat rolled order book is now open,” the company said in a letter to customers Thursday, June 24.
CSI did not say whether or by what amount it might have increased prices. But multiple sources said new base prices for hot-rolled coil were approximately $1,850 per ton ($92.50/cwt) – or up $200 per ton from August pricing.
The company also increased prices by approximately $200 per ton with the opening of its August order book in May. CSI’s July book, too, opened with triple-digit increases.
The sharp gains align with SMU’s pricing data.
SMU’s average hot-rolled coil price is $1,760 per ton – or $88/cwt. That’s up about 79% from $985 per ton at the beginning of the year and quadruple a 2020 low, recorded last August, of $440 per ton.
SMU publishes a price range, and the high end of our range – $1,850 per ton – is representative of recent offers by producers, including some east of the Rocky Mountains.
CSI, approximately 50 miles east of Los Angeles in Fontana, Calif., makes hot-rolled, pickled-and-oiled, cold-rolled and galvanized products as well as welded pipe.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
USS confirms split CFIUS decision on Nippon deal; it’s now up to Biden
Nippon Steel's purchase of U.S. Steel could lead to lower steel output domestically, and that presents “a national security risk," the Washington Post reported.
USS/Nippon deal: Who will have the happiest holidays?
Will Santa bring gifts for the leadership, employees, and shareholders of U.S. Steel and Nippon Steel, and lumps of coal for USW leadership and politicians opposed to the deal?
‘Orderly liquidation’ of AHMSA assets begins
A trustee has formally taken over AHMSA and begun the liquidation process of the bankrupt Mexican steelmaker.
Nippon buying stake in Canadian iron ore project
Nippon Steel and a Japanese trading company have entered an agreement to buy a 49% interest in a Champion Iron ore project in Canada.
USS anticipates Q4 loss on weak demand, BR2 start-up
Amid a challenging pricing and demand environment, and with the ongoing ramp-up of the Big River 2 mill, USS is anticipating a loss for the fourth quarter.