On Tuesday, Severstal North America sent a letter to customers that essentially rescinded the latest price increase for approximately $1.50 cwt. ($33/mt or $30/nt) announced on January 13.
Tuesday's letter indicated that new prices will be as follows:
Hot rolled bands: $37.00 cwt. ($816/mt or $740/nt)
Cold rolled bands: $42.50 cwt. ($937/mt or $850/nt)
Hot dipped galvanized (HDG): $42.50 cwt. ($937/mt or $850/nt)
Tom Marchak, Vice President-Commercial for Severstal, wrote: "Demand in our major steel markets for the first and second quarter continues to improve. However, we have seen an increase of future imports as well as additional capacity and shorter lead-time availability. The outlook for steel consumption remains strong, and we expect continued improvement in the weeks to come. Severstal will continue to monitor pricing and market conditions on a regular basis and may elect to modify future pricing at any time. Our published price book extras will apply."