Severstal North America sent a letter to customers Tuesday morning indicating that effective with all new non-contract orders acknowledged for shipment 12/26/2011 and later, new minimum prices for hot rolled band products will be $35.00 cwt. ($772/mt or $700/nt); prices for cold rolled and hot dipped galvanized bands will be $40.50 cwt. ($893/mt or $810/nt).
The new minimum base prices reflect an increase of $1.50 cwt. ($33/mt or $30/nt) from prices listed in Severstal's last price increase letter on November 2.
Severstal also noted that it will continue to monitor pricing and market conditions on a regular basis and may elect to modify future pricing at any time. Severstal said that it is also reserving the right to re-quote any offers that are not yet confirmed.