Final Thoughts
Cliffs Announces $50/ton Sheet Price Hike in Leading Move
Written by Michael Cowden
December 13, 2022
Cleveland-Cliffs Inc. aims to increase spot market base prices for flat-rolled steel by at least $50 per ton ($2.50 per cwt) effectively immediately.
The steelmaker announced the price hike, a leading move, in a press release on Tuesday, Dec. 13. The increase applies equally to hot-rolled, cold-rolled and coated products.
The company noted that the hike would bring its minimum base price for hot-rolled coil to $750 per ton.
“This additional price increase is in response to market feedback following the company’s November price increase, as well as improving dynamics in the raw materials and distribution markets,” Cliffs said in the release.
The Cleveland-based flat-rolled steelmaker led a round of $60-per-ton price hikes the week after Thanksgiving.
The current increase come after scrap prices settled higher in December and amid expectations that scrap will be up again in January. It also follows an uptick in sheet lead times.
Market participants had told SMU that mills might roll out another round of price hikes ahead of the holidays because producers felt like momentum was on their side, because costs were inching up, and despite uncertainty around 2023 demand. They also said others were likely to follow Cliffs.
At least one producer already has. NLMK USA announced that it would increase base prices by at least $50 per ton on all products. “Orders not yet received and not yet confirmed are subject to this increase,” the company said in a letter to customers on Tuesday.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Final Thoughts
Final Thoughts
One thing we've learned from our survey here at SMU: When prices are rising, people have a lot to say. You can be assured that with our most recent survey, the comments were coming in fast and furious.
Final Thoughts
Before we get whipsawed by the current moment, it’s important to reflect on optimism. Whatever happens, consumers are going to need steel.
Final Thoughts
Remember infrastructure week in Trump 1.0? It became a running joke. Because it was almost always derailed by whatever the scandal of the day was. In Trump 2.0, we've got tariff week. And unlike infrastructure week, tariff week is no joke.
Final Thoughts
That’s not to say Section 232 shouldn’t be tightened up. Or that certain trade practices – even among our traditional allies – weren’t problematic. But when it comes to the reboot of Section 232, I do wonder whether there will be some unintended consequences.
Final Thoughts
As February comes to a close this week, the scrap markets are poised for another – and perhaps more extreme – move upward in March. March is usually a month when scrap prices relent as winter’s impediments subside. That’s not the case this year. And this time, the driver of prices will be increased demand from mills along with restricted flows over the last two months.