Steel Products Prices North America
July 14, 2015
Domestic Mills Ignoring US Steel Price Announcement (So Far)
Written by John Packard
Normally, when the market is starting to heat up and the first of the domestic steel mills announces a price increase, it is matter of a day or two before the others either follow the lead or make a new announcement at a level higher or lower than the first announcement made. The April and June price announcements are good examples where one mill made a $20 move and the others followed (or announced a base price that may have been higher than the $20 but eventually they all come in line with one another due to competitive pressures).
The first two price announcements were each for $20 per ton. There is debate as to how much (if any) of the second price increase has been collected by the mills. Just using numbers, when the first announcement was made at the end of April, Steel Market Update’s benchmark hot rolled average was $445 per ton. Today, some 11 weeks later, our HRC index is $470 per ton, up $25 per ton.
