Wire rod producers raising Jan. extras
Dec 11, 2009 | 12:21 PM
| Corinna Petry
Wire rod surcharges are poised to rise Jan. 1 as producers move to pass on higher steel costs.
Nucor Corp. and Keystone Steel & Wire Co. have both advised customers of a $65- to $80-per-ton surcharge on wire rod shipments beginning Jan. 1 following a 30-percent increase in the consumer buying price of No. 1 busheling in Chicago to $345 per ton from $265 at the end of November.
Ivaco Inc. is increasing its scrap surcharge to the same level, and other mills are expected to follow, mill and buyer sources told AMM Friday.
The announced surcharge increases are triple the $20- to $25-per-ton hikes estimated by buyers earlier this month (AMM, Dec. 4). Buyers' opinions are split on whether the increase will be sustainable beyond a month, although most sources said they thought the hike would stick during January, citing expectations that mill and scrap dealer inventories will remain thin and scrap prices are likely to rise again in the coming weeks.....
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