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 right."
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 there."