In a letter to customers late Wednesday, Severstal North America said that as of April 22, 2013, its minimum base prices will be:
Hot rolled coil: $32.00 cwt. ($705/mt or $640/nt)
Cold rolled coil: $37.00 cwt. ($816/mt or $740/nt)
Hot Dipped Galvanized coil: $37.00 cwt. ($816/mt or $740/nt)
The above minimum prices are now effective for all non-contract orders which have not yet been acknowledged or confirmed. Published price book extras will continue to apply.
"Over the past few months, Severstal has been reviewing current pricing methods, including their effect on our customers. We have found that discounts off a CRU indexed price do not always reflect market conditions. While our contracts for 2013 are essentially in place and will be honored (including those based on CRU indexed pricing), we will no longer consider agreements based on a discounted CRU price. We will continue to work with all our customers to identify pricing mechanisms which best serve our mutual needs."