Subdued Wholesalers Report Mills, "Tapping the Brakes"

Earlier today Steel Market Update participated in the HARDI steel group conference call which resulted in more questions than answers being raised due to the uncertainty in the galvanized steel markets. The call began with a recap of the price announcements which were made by the domestic mills when AK Steel began the process on the 28th of October. Nucor and ArcelorMittal put price parameters around the increases by informing their customers that the minimum base prices on hot rolled would be $33.00/cwt ($660 per ton) and on cold rolled and galvanized at $39.00/cwt ($780 per ton) plus applicable extras.

The HARDI wholesalers who are buying mill direct told the group that they are not seeing the mills as having collected any of the price increase and they continue to pay either the same price as previous to the announcement. One wholesaler said the mills were “tapping the brakes” in an effort to end the slide in prices.