NEW YORK More domestic
mills have joined AK Steel Corp. and Nucor Corp. in announcing
price increases on flat-rolled steel products, mill and
distributor sources confirmed.
Portage, Ind.-based NLMK USA
Inc. began informing customers by telephone Tuesday that it
will increase sheet prices by $50 per ton, AMM
Other North American flat-rolled
producers also were said to be telling customers Tuesday and
Wednesday that they would be following suit, effective
immediately. Numerous customers said that mill representatives
from U.S. Steel Corp., ArcelorMittal USA Inc. and Essar Steel
Algoma Inc. informed them Tuesday afternoon and early Wednesday
of their plans to follow the increase.
Each mill was said to be
increasing prices by the same $50 per ton announced by AK Steel
and Nucor earlier this week, effective immediately on all new
amm.com, Nov. 6). "Theyre all falling in
line," one distributor source told AMM.
Steel buyers said that the
increases place the new book prices of hot-rolled sheet at
between $32.50 and $33.50 per hundredweight ($650 to $670 per
ton) f.o.b. mill, although whether the full increase sticks
remains to be seen, particularly since spot buys are expected
to remain minimal through the end of the quarter, sources
But the timing also correlates
with a rise in ferrous scrap prices and planning for next year
for contractual buyers, sources said, giving the hikes some
possible staying power.
"What this will do is force the
hand on these contract negotiations" for the first quarter of
2013, the distributor source said. "Anybody holding out for
lower numbersthats evaporating."