Nucor Bar Mill Group announced to customers Tuesday that effective with shipments as of September 10, 2008, the company's raw materials surcharge (RMS) applicable to rebar, merchant bar and structural products will decrease to $213/nt ($235/mt or $10.65 cwt.). This represents a decline of $171/nt ($188.50/mt or $8.55 cwt.) compared to the surcharge that went into effect on August 13, 2008.
Meanwhile, Nucor will increase base prices by $101/nt ($111/mt or $5.05 cwt.) for rebars and by $121/nt ($133/mt or $6.05 cwt.) for merchant bars and structural products.
The net result of these changes is a decrease of $70/nt ($77/mt or $3.50 cwt.) for rebar and a decrease of $50/nt ($55/mt or $2.50 cwt.) for merchant bar and structural product transaction prices.
The transaction price levels in question will remain in effect for shipments until October 31.
The company has cited the global softness in the bar market for the decreases in question and added that they expect a rebound in global demand in the fourth quarter of 2008.