Nucor raises sheet prices another notch

US minimill producer Nucor Sheet Mill Group has announced to spot market customers that it will raise prices for flat rolled products, effective immediately.

According to a letter to customers sent out this week, all hot rolled products, cold rolled products and galvanized products will rise by a “minimum of $60/nt." Nucor cited “improving order activity and continued escalation of raw material costs” as the reason behind the sheet price increase, which is the third that it and other US flat rolled mills have announced since early June.

Buyers note that since Nucor's previous flat rolled price increase was slightly less than those of its competitors, the $3.00 cwt. ($66 /mt or $60 /nt) increase puts Nucor's sheet prices back in line with those of the integrated mills, which are asking for a $2.00 cwt. ($44 /mt or $40 /nt) hike for September.

Nucor Sheet Mill Group also released its August 2009 Raw Materials Surcharge (RMS) for sheet products, which is based on benchmark Chicago busheling scrap prices. Contract sheet customers will see their RMS rise by $4.50 cwt. ($99 /mt or $90 /nt) in August from July.