NEW YORK NLMK USA said it expects average prices to increase some $25 per tonne in the fourth quarter, a trend that could continue into 2014, due to stable demand and tight inventory levels.
"In the fourth quarter, we are recording an insignificant increase in steel prices in the United States due to stable demand from key consumers and slightly lower levels of supply in the region," Russias NLMK Group, the parent company of the Portage, Ind.-based steelmaker, said in its third-quarter earnings release Nov. 8.
"We are seeing an average increase in prices of $25 per tonne compared with (the end of the third quarter), and this upward pricing trend could extend to the end of the year," NLMK added.
The announcement came a day after competitors Severstal North America Inc. and AK Steel Corp. raised sheet prices, effectively moving up some $20 to $30 per ton (amm.com, Nov. 7).
While the parent company saw a 3.9-percent dip in global revenue to $2.72 billion for the third quarter vs. the previous three months, North America revenue gained 17 percent to $378 million in the same comparison, the only region aside from Russia to chart a revenue increase. NLMK USA also saw a 5-percent increase in sales on shipments of 450,000 tonnes, due to "significant improvements in pricing in the U.S."