Surcharge discontent said brewing with mills

Jun 05, 2013 | 05:52 PM | Samuel Frizell

Tags  Nucor Corp., Gerdau Long Steel North America, raw material surcharge, shredded automotive scrap, rebar, merchant bars, structural products, Samuel Frizell

NEW YORK — Gerdau Long Steel North America’s move to set its steel prices before scrap settles for the second consecutive month appears to signal the market’s growing discontent with the raw material surcharge mechanism, steel sources say.

In previous months, many steel mills announced their new steel prices in the days following the release of AMM’s monthly consumer buying prices for scrap in the Chicago market, used as the basis for some mills’ raw material surcharges. In May and June, however, Gerdau sent out pricing letters before scrap settled—as well as before traditional pricing leader Nucor Corp.....

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