NEW YORK Steel
Dynamics Inc. (SDI) reportedly has raised prices on its
flat-rolled steel products, making it the latest in a series of
mills to join an increasingly industrywide hike.
The Fort Wayne,
Ind.-based steel producer has increased hot-rolled base prices
to $32.50 per hundredweight ($650 per ton), a number of its
customers told AMM. In addition, SDI has closed its
order books for hot-rolled for July, sources have confirmed.
The company could not be reached for official comment.
The price move came
just days after Hamilton, Ontario-based ArcelorMittal Dofasco
Inc. kicked off a new round of increases of $20 per ton (
amm.com, June 26).
"We dont have
choices anymore because the supply situation has changed," a
Northeast service center source said. "Mills are saying to us
that everything is subject to availability. As long as the
mills can get away with higher prices, theyre going to do
everything they can to keep prices up. I think the momentum is
Others, though, argue
that demand has not changed enough to justify higher prices,
noting that competition at the service center level will
heighten due to squeezed margins.
"I dont think I
see anything, economically speaking, that is better," a
southern service center source said. "Everyone is fighting for
the same orders. Theres still too much uncertainty out