Nucor has announced that effective with shipments May 1, 2008, the company's raw materials surcharge (RMS) applicable to concrete reinforcing bars, merchant bars and structural products will be $393/nt ($433/mt or $19.65 cwt). This represents an increase of $147/nt ($162/mt or $7.35/cwt) when compared to the April 2008 surcharge.
The net effect of this move is that Nucor's transaction pricing for reinforcing bar, merchant bars and light structural products will increase by $147/nt ($162/mt or $7.35 cwt).
In addition, due to the unprecedented rapid rise in the cost of raw materials, Nucor will apply the new surcharge of $393/nt ($433/mt or $19.65 cwt) for all new orders of concrete reinforcing bar, merchant bars and light structural products effective Tuesday, April 8, 2008.
All confirmed orders as of close of business on April 7, 2008 will be price protected at the current price if shipped no later than April 30, 2008.
In an announcement on the issue, Nucor said this cost increase is the result of weather-influenced scrap collection, flow and processing problems, strong global demand and a weak US dollar.