Nucor Bar Mill Group announced to customers late Wednesday that effective with shipments as of November 6, 2008, the company's raw materials surcharge (RMS) applicable to rebar, merchant bar and structural products will be $0.00/cwt. This represents a decline of $83/nt ($91/mt or $4.15 cwt.) compared to the surcharge that went into effect on October 13, 2008.
Meanwhile, Nucor will decrease base prices by $97/nt ($106.92/mt or $4.85 cwt.) for rebars and there will be no change to the base prices of merchant bars and structural products.
The net result of these changes is a decrease of $180/nt ($198.42/mt or $9.00 cwt.) for rebar and a decrease of $83/nt ($91/mt or $4.15 cwt.) for merchant bar and structural product transaction prices.
The company has said that the RMS mechanism remains in effect and will be applicable when the AMM Consumer Buying Price goes above the program's baseline amount.