Cliffs Announces $50/ton Sheet Price Hike in Leading Move

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.

arrow up 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

Michael Cowden is editor-in-chief for Steel Market Update. Cowden has covered the steel industry since 2007. He specializes in flat-rolled steel but has also reported on steel long products, steel pipe and tube, and aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.