US-based steelmaker Cleveland Cliffs today announced their third flat rolled price increase in less than two weeks, and their fourth price increase during the month of February.
On February 2, 13, and 21, the steelmaker announced price increases of $2.50 cwt. ($55/mt or $50/nt) for all flat rolled steel products, including domestic HRC. Today, Cliff’s indicated they’re raising prices for all flat rolled steel products by a minimum of $5 cwt. ($110/mt or $100/nt), and that they've established a new minimum HRC base price of $55 cwt. ($1,213/mt or $1,100/nt), FOB mill.
Last week, Cliffs and Nucor set new minimum HRC pricing at $45 cwt. ($992/mt or $900/nt), FOB mill.
At the time of the announcement, other mills have not yet joined the fray. Many speculate that Nucor could announce by the end of the day.
Prices for all sheet steel products have been steadily rising since the first increase was announced in late November.
Current HRC spot market prices are being heard at approximately $40-$42 cwt. ($882-$926/mt or $800-$840/nt), FOB mill, whereas spot market prices for US CRC and HDG coil are trending at $52-$54 cwt. ($1,146-$1,191/mt or $1,040-$1,080/nt), FOB mill, and $49-$52 cwt. ($1,080-$1,146/mt or $980-$1,040/nt), FOB mill, respectively.
Transactions up to $4 cwt. ($88/mt or $80/nt) above these ranges, for small-tonnage orders, have been heard throughout the marketplace.
Sources also continue to say they’re “astonished” that CRC prices are higher than prices for base-price HDG coil. “That can’t last,” a source said.
Whether the increase will be fully accepted is still a matter of speculation, as many sources have reported a belief that the market is “at or close to the ceiling. On the other hand, we’ve been saying this since early February, but prices keep rising and the increases keep on coming.”
