Effective with all new non-contract orders received and acknowledged after April 30, Severstal's new minimum published base prices for hot rolled, cold rolled and coated products will be:
Hot rolled bands: $36.00 cwt. ($794/mt or $720/nt)
Cold rolled: $41.50 cwt. ($915/mt or $830/nt)
Hot dipped Galvanized: $41.50 cwt. ($915/mt or $830/nt)
On Friday, Severstal North America sent a letter to customers raising base prices on all new flat steel product orders. Severstal said "steel demand continues to be supported by gains in automotive, the energy sector and durable industrial production. Construction is beginning to show some improvement led by new residential multi-unit home starts which are 34 percent higher than the first two months of 2011. We see generally good demand in the markets we serve with an indication of continued improvement."
Compared to Severstal's March 19 letter, Friday's announcement represents a $1.00 cwt. ($22/mt or $20/nt) increase.
Meanwhile, on Thursday, RG Steel announced it would be increasing transaction prices a minimum of $1.25 cwt. ($28/mt or $25/nt) effective will all new orders. RG said the increase would be applicable to all products at all RG Steel producing locations. Orders already on the books will be price protected within five days of original acknowledged ship date or material ready date, whichever is later, RG Steel explained in the price announcement letter.
Severstal NA's and RG Steel's increases follow similar $1.00 cwt. ($22/mt or $20/nt) price hikes from ArcelorMittal USA and Nucor Sheet Mill Group.