As predicted by SteelOrbis last week, Nucor issued a price increase announcement Wednesday, and sources say other mills will “of course” follow suit. Effective with shipments as of September 1, Nucor’s price increase of $0.50 cwt. ($10/nt or $11/mt) has garnered supportive sentiment in the market, with many sources believing the full increase will go through, unlike the $1.00 cwt. ($20/nt or $22/mt) price increase announced in mid-June.
Rising US domestic scrap prices and import wire rod offers are helping to boost the price increase’s prospects, despite demand continuing to lag behind other long products, such as rebar. But as one source said, “mills were smart to go with a small increase,” which has a much higher chance of absorbing into the market than a more “ambitious” increase.
While it is still too soon to see how quickly the increase will make its way into spot prices, sources report that mills are continuing to negotiate orders near the high end of the current spot range of $29.50-$30.50 cwt. ($590-$610/nt or $650-$672/mt) ex-mill.