US steelmaker Nucor Bar Group announced a $60/nt ($66/mt) or $3.00/cwt., increase in the price of its merchant and structural shape steel products effective with new orders received after the close of business on February 17, although confirmed orders will remain price protected if shipped by February 28, the steelmaker said in a letter to its customers.
A day later, Houston, Texas based Mexican steel importer DeAcero-Mid-Continent Steel and Wire announced its own price increase of $60/nt ($66/mt) for its merchant bar products destined for the US market, however, they added that the company reserves the right to change pricing if the United States levies a tariff against Mexico. The same price protections for confirmed orders by February 17 are offered by DeAcero.
While no reasons were available from Nucor and DeAcero as to why prices were rising, market insiders told SteelOrbis recent increases in the price of steel scrap are behind recent mill price increases. Yesterday, Nucor announced another increase in the price of its hot rolled coils by $30/nt ($33/mt) to $820/nt ($904/mt) FOB mill, a 3.8 percent weekly increase. Nucor’s Consumer Spot Price (CSP) for HRC has increased each of the past four weeks, after remaining stable for 11 weeks straight.
On February 10, Nucor announced it would also be raising its rebar prices by $40/nt ($44/mt), adding that the increase was “necessary due to the significant rise in input cost, which has impacted (their) operations.”
At the conclusion of the February steel scrap buy-cycle negotiations, Midwest busheling scrap settled an average $45/gt ($46/mt) higher to $455-480/gt ($462-488/mt), while shredded scrap settled an average $35/gt ($36/mt) higher to $430-435/gt ($437-442/mt).
Insiders said low levels of scrap inventory at both mills and suppliers and cold weather-related problems with transportation and processing of local scrap were behind the scrap price increases. Recent tariff announcements by the Trump administration also are expected to trim imports of steel scrap starting in March, they said. March scrap currently is assessed $20-$30/gt ($20-30/mt) higher than February settles, market insiders said.
