NEW YORK Nucor Corp. has
lowered its net price for concrete reinforcing bar (rebar) by
$15 per ton, leading Gerdau Long Steel North America to retract
its earlier price hike and fall in line with Nucors
Charlotte, N.C.-based Nucor said
in an April 10 letter to customers that it was increasing its
base price for rebar by $7 per ton (35 cents per hundredweight)
but reducing its scrap surcharge by $22 per ton ($1.10 per cwt)
effective with April 11 shipments, resulting in a $15-per-ton
(75-cents-per-cwt) decrease in transaction prices.
AMMs Chicago consumer buying price for shredded
automotive scrapused as the basis for Nucors raw
materials surchargefell $22 per ton last week (
amm.com, April 4).
The $15-per-ton decrease
essentially changes the steelmakers announced April 1
increase of $25 per ton to a more modest $10-per-ton increase,
Nucor said in the letter. A Nucor spokesman confirmed that the
company had revised its pricing but declined to comment
Nucors move comes just
days after competitor Gerdau Long Steel North America said it
would increase rebar transactional prices by $10 per ton (50
cents per cwt) effective with new orders April 15 (
amm.com, April 5). At the time, sources speculated
that Gerdau appeared to be seeking to put a floor under prices
in the wake of falling scrap tags, rather than pushing for a
true transaction price increase (
amm.com, April 9).
However, as a result of
Nucors move, Tampa, Fla.-based Gerdau has since opted to
retract that increase.
"We are disappointed with recent
price change announcements in the marketplace, which we
dont believe align with current market conditions.
However, in order to maintain our competitive position in the
market, Gerdau Long Steel North America is rescinding the price
letter dated April 5 announcing a 50-(cent-per-cwt) increase
effective April 15, 2013," Marcelo Canosa, Gerdaus
commercial director for rebar and wire rod, wrote in a letter
from the company dated April 11.
"Also, effective immediately,
Gerdau Long Steel North America is decreasing the transactional
price of reinforcing bar products by 75-(cent-per-cwt)," the
Gerdaus decision to change
its stance didnt come as a surprise to players in the
steel long products market, who had told AMM earlier
in the day that they were waiting for a possible follow-up
announcement from Gerdau, as Nucor is traditionally considered
the pricing leader for rebar.
"Ill go out on a limb and
predict a backpedal," a rebar fabricator said earlier
"Weve got falling scrap
prices and that puts everyone on the defensive," a mill source
added of the falling prices. "If (buyers have) work,
theyre taking material. If they dont have work,
theyre not interested in putting it in inventory."