In a letter to customers Thursday, Severstal North American indicated that effective immediately, its minimum published base prices are:
Product | Base price (6/27/13) | FPO Quarterly (Jul-Sep) | FPO 6 months (Jul-Dec) |
Hot rolled sheet | $32.75 cwt. ($722/mt or | $33.75 cwt. ($744/mt or | $34.75 cwt. ($766/mt or |
Cold rolled sheet | $37.75 cwt. ($832/mt or | $38.75 cwt. ($854/mt or | $39.75 cwt. ($876/mt or |
HDG sheet | $37.75 cwt. ($832/mt or | $38.75 cwt. ($854/mt or | $39.75 cwt. ($876/mt or |
The Firm Price Option (FPO Extra) reflects producer price risk. This option is valid only when published base prices are used, Severstal said.
New base prices reflect an increase of $1.25 cwt. ($28/mt or $25/nt) from Severstal's published prices as of June 14. Thursday's announcement is the third round of price increases from flat rolled mills since late May.
Severstal also said, "we are reviewing additional pricing options including: raw material, scrap based or indexed to the change in published price indices. The new prices above are effective for all orders not yet acknowledged or confirmed. Published price book extras, available on our website, will continue to apply. We will continue to monitor pricing and market conditions and may elect to modify future pricing at any time."