U.S. Steel to launch a new round of price increased

Due to increased costs and tight supply, in early November, the United States steel mills comprehensively launched a new round of price increased, this initiatives is expected to push the U.S. market as a whole rose.

California iron and steel company, USS-Posco, Severstal North America and AK Steel Corporation have announced Sheet price increased, the range is 20-60 U.S. dollars / short ton. After price increased, ex-factory price of hot coil rose to 680-710 U.S. dollars / ton, ex-factory price of cold rolling rose to $790-820 / ton. Gerdau Long Steel North America, Steel Dynamics Corporation, Nucor Steel Company and Commercial Metals Company have increased rebar prices 10-20 U.S. dollars / short ton, after adjusting Midwest mill of rebar prices rose to 650-680 U.S. dollars / short ton. Nucor Steel Corporation also announced price of plate further increased $ 40 plate / short ton. Adding the October price increased totally raised $ 70 / short ton, A36 commercial grade plate of ex-factory price will rise 770-790 U.S. dollars / short ton. In addition, North American companies Gerdau Long Steel North America raise wire rod prices to 30 U.S. dollars / short ton, wire ex-factory price will rise to 660-670 U.S. dollars / short ton.

November U.S. scrap price increased by $ 20-30 / long ton, steel mills of raw material costs increased substantially, at the same time close to the end of the year buyers started to replenish stocks, while both domestic and imported resource began to appear shortage. Preliminary statistics show, October U.S. steel imports MOM dropped by 44%, compared to last year decreased 37%, the imports since March 2010 to reach its lowest level. Increased costs and supply shortages are the main reason for helping steel mills to increase price.

As good basic for the U.S. market, this round of price increases is expected to be accepted by the market. Market is expected next year a quarter sheet imports will continue to shortage, therefore, to the end plate market can absorb at least some of its gains. In the field of long product, due to rebar prices are still low, the market is expected to absorb at least 10 U.S. dollars / short ton of gains; because wire demand is relatively weak, the rate of increase is limited. Thick market due to supply shortages, price increased are expected to be accepted, however, considering the potential import pressures, continued upside may be limited.

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