NEW YORK Nucor
Corp.s recent $20-per-ton ($1-per-hundredweight) increase
on merchant bar and structural products is expected to take
hold, according to some market participants.
"I would think
its probably going to hold because of scrap going up and
because the first quarter is usually a little stronger," one
Midwest service center source said.
surprised by it, and everybody anticipated an increase. Whether
it was $10 or $20 per ton was up to some speculation," a second
Midwest distributor said.
Nucor raised merchant bar prices (
amm.com, Dec. 18) after Gerdau Long Steel North
America, Tampa, Fla., increased its merchant bar tags $10 per
ton (50 cents per cwt) earlier in the month (
amm.com, Dec. 12).
"Maybe they (Gerdau)
thought they couldnt get away with $20 (per ton) because
the market isnt that strong right now," the first Midwest
But other mills are
largely expected to follow Nucors latest increase.
"They (Nucor) are
generally the leader in all this stuff. I think Gerdau will
follow that extra 50 cents (per cwt) too," a western
Inc.s (SDIs) Roanoke Bar division in Roanoke, Va.,
has followed the $20-per-ton ($1-per-cwt) increase on merchant
products, according to a price list on the companys
Fort Wayne, Ind.-based
SDI recently said long product margins were expected to crimp
fourth-quarter earnings (
amm.com, Dec. 18).
Mexican merchant bar
makers are also said to have raised their prices in light of
"They go up pretty
much right away whenever Nucor announces," the western
"Gerdau is currently
evaluating to ensure its products are transacting where they
should be in the value stream," a company spokeswoman told
AMM via e-mail.