Key US steelmakers looking to raise flat-rolled sheet prices

ArcelorMittal USA, Nucor and US Steel are aiming to raise their sheet prices after coronavirus-led demand disruptions caused significant downward pressure since mid-March.

ArcelorMittal USA said it would be targeting minimum base prices of $500/st for hot-rolled coil and $700/st for cold-rolled and coated products late, according to four buyside sources. The price move was conveyed internally to sales representatives with customers reporting the details late Thursday.

ArcelorMittal would be the the first US steelmaker to officially notify customers of a formal price increase. Nucor and US Steel also moved forward with an increase in their flat-rolled pricing early Friday and informed their customers, according to the buyside sources.

Without mentioning a targeted minimum base price, Nucor informed its customers of an increase of a minimum of $50 in flat-rolled sheet prices, effective immediately. US Steel also communicated a minimum of $60 increase in its sheets pricing to its customers, without including targeted base prices.

The coronavirus pandemic has caused major demand disruptions, particularly in the automotive and energy sectors, causing prices to plummet. Since March 17, the daily Platts TSI US HRC index has fallen by more than 22% to a four-year low of $460/st.

Market sources on Wednesday and Thursday indicated most mini-mill producers were also raising prices for June production. The lower-priced offers of $460/st and below were being replaced with $500/st, buyside sources said. It still remained extremely unclear if the attempts by mills would have any staying power as overall demand levels remain weak.

The problems caused by the depressed finished steel prices were only being exacerbated by the anticipated rise in ferrous scrap input costs in May as prime scrap availability was sparse.