Flat rolled steelmaker NLMK USA, which operates steel mills in Indiana and Pennsylvania, announced Thursday an immediate $2.50 cwt. ($55/mt or $50/nt) base price increase on new orders of all products.
In a letter sent to customers, NLMK USA explained the increase: "We have seen continuing strength in the energy, agriculture, heavy equipment and automotive markets, and while construction activity remains slow it is no worse than earlier this year. The economy continues to improve albeit slowly. However, over the past few months we have also seen compression between market prices and raw material costs, and this compression has now reached an unacceptable and unsustainable level."
The move follows a $1.50 cwt. ($33/mt or $30/nt) increase by Severstal North America Wednesday, and price increases from other domestic producers are anticipated in the coming days.