ArcelorMittal USA announces $40/st sheet steel price hike

2016-11-17

Nov. 15, 2016 - For the second time in about a week ArcelorMittal USA has announced a sheet steel price increase in the US market -- this time a $40/st move, effective immediately, the steelmaker told customers in a letter issued late Monday.

ArcelorMittal informed customers that its new minimum base prices are $560/st for hot-rolled coil and $780/st for cold-rolled coil and hot-dip galvanized/galvalume sheet (substrate).

If other sheet makers follow, it would be the third round of US sheet price hike announcements in about three weeks. "Seems like continued momentum," said one American sheet buyer.

Mills announced $30/st price hikes near the end of October, followed by another $30/st last week, and now the $40/st move by ArcelorMittal. Mills have achieved about $40/st of the announced increases on HRC thus far and less on CRC, which didn't fall as steeply as HRC in the months prior to the increase announcements.

"These prices are applicable to all new orders and recent quotations that have not yet been accepted and acknowledged with an ArcelorMittal or AM/NS Calvert Order Acknowledgment," ArcelorMittal said in a November 14 letter to customers seen by S&P Global Platts. "We reserve the right to change any outstanding quotations or pending orders without further notice. Our books are also now opened to receive orders for production and shipments in January of 2017."

Write to Gugi Cheung at gugi@refwin.com