In the days leading up to Thanksgiving, US domestic HSS mills announced a price increase of $3.75 cwt. ($83/mt or $75/nt), effective immediately with all new orders. Prior to the increase, US HSS prices were heard at $47.50-$48.50 cwt. ($1,047-$1,069/mt or $950-$970/nt) FOB mill. Today, prices are trending at $51.50-$52.50 cwt. ($1,135-$1,157/mt or $1,030-$1,050/nt), FOB mill. Lead times are reportedly hovering at 6-8 weeks.
Today however, Nucor and Atlas Tube announced another round of increases. Although sources said the $3.75 cwt. ($83/mt or $75/nt) increase was already “substantial,” today’s increase, which mills say is effective immediately, was announced at $5.00 cwt. ($110/mt or $100/nt). Mills that have not yet announced are expected to follow.
Demand is good, sources note, adding that based on the continued price upticks within the flat rolled steel and scrap markets, it’s not surprising that mills announced again.
One source shared the following sentiment earlier today, before the increase announcements were sent out. “I’m telling my customers that if they need steel for January, buy it, because you’ll be able to sell and make a profit by the time you get it. The market still has legs. Prices seem to be going up almost weekly, and I expect we’ll see another price increase announcement sooner than later.”
Today’s increases were announced less than an hour after the conclusion of that call.