Final Thoughts

What an interesting week it has been, and it’s only Tuesday. As previous articles have already stated, Nucor, U.S. Steel, NLMK USA and ArcelorMittal (verbally) have joined California Steel and USS/POSCO by announcing $40 per ton price increases on flat rolled. For those of you who are new to the industry or to our newsletter, the appropriate question at this point is: $40 per ton added to what base price? No mill has announced specific “minimum” base price levels, so we are left to guess, and steel buyers are left to negotiate with their suppliers.

My early channel checks show buyers are split on whether the price increase “sticks” (is collected in full), but many are of the opinion that the bottom in spot prices should be achieved and we will either see a balanced pricing market or we will see a portion of the increases being collected.