Dearborn, Michigan-based Severstal North America issued a pricing announcement Wednesday discussing the recent fall of US domestic flats prices, and established new minimum base prices.
Effective with all new non-contract orders acknowledged for shipment 11-28-2011 and later, Severstal's minimum prices for hot rolled, cold rolled and coated products will be as follows:
Hot Rolled Bands: $33.50 cwt. ($739/mt or $670/nt)
Cold Rolled: $39.00 cwt. ($860/mt or $780/nt)
Hot Dipped Galvanized: $39.00 cwt. ($860/mt or $780/nt)
"In early April, steel pricing began a decline which has lasted more than seven months, putting unprecedented pressure on margins. During this time, there has been moderate demand growth in most of the markets we serve, while prices in the marketplace have declined more than 25 percent. It is critical that we fully recover our costs of production, and address the recent margin compression."
Severstal did not indicate how much of an increase the new base prices reflect, only noting that "These new Base Prices reflect only a modest increase from current transaction prices. Severstal will continue to monitor pricing and market conditions on a regular basis and may elect to modify future pricing at any time."
Published book extras will apply.