NEW YORK NLMK
USA and ArcelorMittal USA LLC have kicked off a fresh round of
steel sheet price hikes effective immediately, a move that
buyers say has a strong chance of taking off if other mills get
NLMK set its minimum
base price for hot-rolled coil at $33.50 per hundredweight
($670 per ton), cold-rolled coil and coated material at $38.50
per cwt ($770 per ton) and specialty 1050 material at $48 per
cwt ($960 per ton), the Portage, Ind.-based steelmaker said in
a Sept. 30 letter to customers.
ArcelorMittal raised its base prices to $34 per cwt ($680 per
ton) for hot-rolled coil and $39.50 per cwt ($790 per ton) for
cold-rolled and coated material for delivery by Dec. 31. The
steelmaker added that its hot-rolled order books were into
November and its tandem mill books were into December.
price assessment Sept. 26 put hot-rolled sheet at $32 per cwt
($640 per ton) and cold-rolled sheet at $37.50 per cwt ($750
came on the heels of mounting market speculation that a price
increase was near due to low inventory levels and extended lead
amm.com, Sept. 25).
"I think it can stick
as long as other people understand the market well enough and
choose to support it," one Midwest service center source said.
"Youll need one of the big three to come out and say,
Yeah, our lead times are out and we want to support
it. Itll absolutely hold water."
Sources said that a
number of other mills were said to be mulling similar
The last round of
price hikes, initiated at the start of the summer, effectively
moved hot-rolled published prices to a range of $33.50 to
$33.75 per cwt ($670 to $675 per ton) from a transactional base
of $28 per cwt ($560 per ton) previously (
amm.com, July 29). A number of factors,
particularly supply-side changes, helped keep the market
However, the move is
interesting because "there are mills out there looking for
business," one East Coast service center source said.
"Lets see if this is a move to hold the current pricing
or move it higher." He added that passing the price increase
along to end customers would be difficult.