SSAB informed US customers that it will immediately increase steel sheet prices by $ 40 for new orders.
The announcement follows Nucor’s decision to set a minimum base price of $ 560 per unit, which it announced on August 21.
The announcement applies to rolled sheet, cut to length and hot rolled coil over 72 inches wide, as well as normalized, quenched and tempered sheet.
The most recent daily US Platts TSI was $ 555.50, including Midwest shipments. Since the beginning of July, sheet metal prices have fallen by nearly $ 60 each amid weak market conditions.
While sources were unsure if the rise would sustain persistent weak demand, some believed the announcement could help set a floor for sheet metal prices.
“There is no demand, so it’s just a matter of discipline at the plant,” said one source at the service center. “They have a chance to bet at $ 560 apiece, but that’s as good as the weakest player is.”
Another source at the service center believed the price hikes would only continue if other major manufacturers followed suit, but added that the Nucor base price announcement could prevent the manufacturer from announcing price increases in the near future.
“It might help bolster prices at $ 560,” a source at the plant said, while a third source at the service center was more skeptical.
“The factories will try to dig in,” the source said. “But the demand for sheet metal is not that good … and the order books of the factories are not very strong either.”
Later that day, ArcelorMittal raised prices by announcing a $ 40 /piece price hike for wafers with immediate effect on all new orders.
The increase applies to all non-contractual products in carbon, HSLA, alloys, heat treated and special sheets.