Nucor, SDI raise wide flange beam prices by $60/s.ton
Nucor and Nucor-Yamato are increasing transaction prices on wide flange beams by $60 per short ton for September deliveries via a raw materials surcharge. The move far exceeds pricing expectations of just a few weeks ago.
Steel Dynamics Inc. (SDI), which has the same surcharge system as Nucor, will follow with the same net transaction price increase. Both companies will add a $73/s.t. surcharge based on a similar rise in published shredded scrap prices – and will then offset the surcharge by $13/s.t. with base price reductions.
"The thinking has evolved on this. At first we thought we would see a $20 increase, based on scrap, but this market can turn on a dime" says a market source, noting that the quick rise in prices has caused Mittal Steel in Poland to pull its offers. Sources say Arcelor, a larger offshore supplier to the US market, has resisted making offers because of domestic mill pricing uncertainty. "If they are out there, they are out there very quietly. They were waiting for Nucor."
Chaparral Steel, a third major North American beam maker, had already announced a $58/s.t. WF beam price increase via a surcharge, but buyers were also waiting to hear from industry leader Nucor before determining likely September prices, as previously reported.
Steel Dynamics Inc. (SDI), which has the same surcharge system as Nucor, will follow with the same net transaction price increase. Both companies will add a $73/s.t. surcharge based on a similar rise in published shredded scrap prices – and will then offset the surcharge by $13/s.t. with base price reductions.
"The thinking has evolved on this. At first we thought we would see a $20 increase, based on scrap, but this market can turn on a dime" says a market source, noting that the quick rise in prices has caused Mittal Steel in Poland to pull its offers. Sources say Arcelor, a larger offshore supplier to the US market, has resisted making offers because of domestic mill pricing uncertainty. "If they are out there, they are out there very quietly. They were waiting for Nucor."
Chaparral Steel, a third major North American beam maker, had already announced a $58/s.t. WF beam price increase via a surcharge, but buyers were also waiting to hear from industry leader Nucor before determining likely September prices, as previously reported.