Sources close to SteelOrbis say that new mill price increase announcements this week are “hardly news in the current environment,” adding that no one is surprised that Nucor, SSAB, and Cleveland-Cliff are all aiming to get prices higher.
Nucor announced plans to raise prices by $6.00 cwt. ($132/mt or $120/nt), FOB mill, effective immediately. SSAB, on the other hand, announced plans to raise prices by a total $7.50 cwt. ($165/mt or $150/nt). All sources polled said they believe the increases will be accepted, which would put spot market prices at $72-$74 cwt. ($1,587-$1,631/mt or $1,440-$1,480/nt), FOB mill. In contrast, prices during the first week of January were trending at of $46-$47 cwt. ($1,014-$1,036/mt or $920-$940/nt), FOB mill.
“All indications are that prices will continue to rise, but the big question is how long it’s going to take for the market to turn,” a source said. “We’re now hearing that scrap could go up again next month, and that will certainly play into mills’ pricing rationale.”