Steel Mills
SSAB Holds RMS Even as Scrap Prices Decline
Written by David Schollaert
July 14, 2022
SSAB Americas will hold its raw materials surcharge, or RMS, on #1 Heavy Melting Scrap (HMS) unchanged effective July 31 on all spot orders and all contractual agreements.
The Mobile, Ala-based steelmaker said the sideways move was due to a declining HMS #1 price tag, which is currently valued at $351 per gross ton, and below the $465 per gross ton threshold.
The note applies to both US and Canadian customers, who will see a $0.00 per net ton surcharge in August.
SSAB implemented a raw materials surcharge, or RMS, in March to mitigate potential losses due to “extraordinary market pressures brought on by recent global events” – a response to the war in Ukraine.
The steelmaker is basing the calculation of the RMS on the SteelBenchmarker™ #1 HMS index value, USA, East of the Mississippi as published on the Thursday following the second Monday of the month.
SSAB said any amount exceeding the threshold will be applied at the time of shipment, but when the index is below the threshold, no surcharge will be applied.
SSAB Americas is a subsidiary of Swedish steelmaker SSAB. The company operates plate mills in Mobile and in Montpelier, Iowa.
Plate prices have been largely unchanged over the past four weeks, bucking the trend seen in domestic sheet prices. Plate prices are averaging $1,800 per ton, according to SMU’s latest check of the market on Tuesday, July 12, at nearly twice the premium to hot-rolled coil (HRC) tags.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Mills
Primetals to replace two EAFs at US mill
Primetals Technologies will be replacing two electric-arc furnaces at a steel mill in the US with one more energy-efficient furnace.
Nippon’s Mori meets with Pa. Gov. Shapiro: Report
Nori, a top Nippon Steel official, met on Tuesday with Pennsylvania's governor, to discuss its proposed acquisition of U.S. Steel.
Nippon won’t import slabs to US if U.S. Steel deal goes through
Nippon Steel has affirmed that if its $14.9-billion bid for U.S. Steel proves successful, the Japanese steelmaker will not import overseas-produced slabs to the US.
AISI: Raw steel production falls to 5-week low
Domestic raw steel mill production slipped to a five-week low last week, according to the latest figures released by the American Iron and Steel Institute (AISI). Weekly production is now at the third-lowest level recorded this year.
Nucor maintains HR price at $750/ton
Nucor’s weekly consumer spot price (CSP) for hot-rolled (HR) coil was unchanged week on week (w/w) at $750 per short ton (st) on Monday, Nov. 18.