In a letter to customers Thursday, Barry Zekelman, Executive Chairman and Chief Executive Officer of JMC Steel Group, said:
"In light of recent events, we are providing an update on our position regarding the current hot rolled coil and HSS increases."
"We believe that the hot rolled coil market will continue to strengthen as buyers replenish their inventories in a market that has less capacity available. The increases for hot rolled coil are important to the long term health of all members of the supply chain from the primary mills through service centers.
We believe that the HSS increase is necessary based on strong demand for HSS products. Total HSS shipments in 2012 were one of the highest levels in the last 10 years, and 2013 shipment levels are running ahead of 2012."
"There is no benefit to the destructive behavior of some HSS mills. We will not respond to these mills. Our price increase announcement remains unchanged at $2.50 cwt. ($55/mt or $50/nt)."
As SteelOrbis previously reported, while Atlas Tube, a division of the JMC Steel Group, announced a $2.50 cwt. price increase on June 3 (which was immediately followed by multiple mills), Hanna Steel Corp and Southland Tube only announced increases of $1.50 cwt. ($33/mt or $30/nt), resulting in some tube mills lowering their price increases by $1.00 cwt. ($22/mt or $20/nt)