ArcelorMittal released an announcement Monday to its customers indicating it will increase hot rolled coil (HRC), cold rolled coil (CRC) and hot dipped galvanized (HDG) non-contract base prices effective immediately.
As a result, the company's spot base prices on HRC have increased by $50 /nt ($2.50 cwt. or $55 /mt), resulting in a new price of $460 /nt ($23.00 cwt. or $507 /mt); CRC spot base prices have increased by $70 /nt ($3.50 cwt. or $77 /mt), to reach $560 /nt ($28.00 cwt. or $617 /mt); and spot HDG base prices have increased by $90 /nt ($4.50 cwt. or $99 /mt), and are now at $580 /nt ($29.00 cwt. or $639 /mt).
The company told customers that since its last announcement on June 3 (in which it pegged HRC base prices at $20.50 cwt. and CRC and HDG both at $24.50 cwt.), it has experienced several positive factors which led to this price increase, including: the successful implementation of the June 3 prices on its non-contractual business; MSCI data which indicates service center inventories have been reduced by approximately 350,000 tons in May; and an increase in orders from its end-user customers indicating that customers have also fully depleted their inventory levels and that some are planning increased production schedules during the third quarter.