The firm said in a letter sent to its internal sales team Wednesday that as a result of strong market conditions, it will raise US flat rolled base prices for all new orders to the following levels:
- Hot rolled: $600/nt ($30.00 cwt. or $661/mt)
- Cold rolled: $700/nt ($35.00 cwt. or $772/mt)
- Hot-dip galvanized: $720/nt ($36.00 cwt. or $794/mt)
These new base prices set by ArcelorMittal represent an increase of approximately $60/nt ($66/mt or $3.00 cwt.) from the producer's previous price levels.
The company stated in the letter to its sales team, "Market conditions continue to move favorably for all sheet products. The combination of lean inventories throughout the supply channel and the return of strong volume commitments from several of our key market segments have driven us to ramp-up more production to meet this increased consistent demand."
Other US flat rolled mills seem to be gearing up to announce further price increases as well, with two producers announcing Thursday that they have halted new order acceptance. Nucor Sheet Mill Group sent a letter to Nucor Steel Arkansas customers Thursday informing them that the mill has temporarily suspended acceptance October spot orders, effective immediately.
US West Coast flat rolled steelmaker California Steel Industries (CSI) also told customers Thursday that it is temporarily suspending flat rolled product order acceptance for October availability and shipment.