SBQ buyers gear for $90/T hike in Jan.
Dec 10, 2010 | 12:55 PM
| Corinna Petry
Hot-rolled and cold-finished steel bar product buyers are preparing for higher prices come January, with many buyer sources agreeing that a $40-per-ton base price increase and a $50-per-ton raw materials surcharge hike scheduled to take effect Jan. 1 likely will be accepted and passed down the supply chain.
Steel bar manufacturing capacity is so tight that most buyers confirmed that lead times on certain grades and sizes are now out to 50 weeks, and there is a strong likelihood that other mills—namely Republic Engineered Products Inc. and Gerdau Macsteel—might follow Timken Co.'s lead in putting customers on allocation (AMM, Nov. 15). Many commodity grades from other North American producers do have lower lead times of 14 to 18 weeks, sources told AMM.
Nucor Corp. issued raw materials surcharge letters this past week on special bar quality (SBQ), with the surcharge up $2.50 per hundredweight to $13.50 per cwt ($270 per ton) based on AMM's Chicago consumer buying price of $440 per ton for No. 1 busheling. Nucor's surcharge was unchanged in November and December at $11 per cwt.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.