US longs producer Gerdau Ameristeel took the lead on announcing long product pricing this month following the sharp decrease in scrap prices.
Gerdau Ameristeel notified customers that it will extend its current pricing on all products shipped through the balance of this year.
The company said in the letter to customers that despite "the seasonal lull we currently face, accentuated by the impact felt by the Middle East, Turkey and China exiting the market temporarily due to extraordinary events such as Ramadan and the 2008 Olympics" it expects these regions to be back in the market by late September or early October, and it believes "the underlying fundamentals point to a strong global demand for iron and steel products."
Gerdau Ameristeel's decision to keep its pricing stable comes as somewhat of a surprise, given the tremendous drop in scrap pricing this month. Nucor Corporation, which typically is the first major company to announce its longs pricing, is expected to lower its prices imminently, though not by the full amount of the scrap decrease.