Cleveland-Cliffs pushes US plate prices to $900/st ex-works

Pittsburgh — Only eight days after the former ArcelorMittal USA announced it was raising plate prices to $800/st on an ex-works basis, the steelmaker, now owned by Cleveland-Cliffs, informed customers it would again increase plate prices Dec. 16.

Cliffs said it was raising plate prices "in order to capture escalating costs and to restore market value for steel plate products" in a letter to customers.

The steelmaker set its new minimum base price for as-rolled plate at $900/st on an ex-works basis, which will apply to all new spot orders.

In addition, alloy and quenched and tempered grade A514B base prices were listed at $1,150/st on an ex-works basis, while normalized grade A516-70 will be at $1,030/st, ex-works.

February order books were closed "except for remaining sales plan volumes" and March order books were open for heat-treated products only, according to the letter. March order books for as-rolled plate would be opened "in the near future."

Canadian producer Algoma Steel had announced a price increase of $80/st on its plate products earlier in the day, effective with new spot orders. Both moves follow SSAB's plate price increase of $100/st from Dec. 15.

"I can't think of any time that I've seen a situation like this," said a service center source following the price increase. "The mills don't want the [plate-hot-rolled coil] spread to get out of hand. But demand doesn't justify it."

Another service center source characterized the announcement as a "complete meltdown."

"It's because they can, at least for now," said a third service center source. "Plate mills will ride the coattails of the HRC mills for as long as possible."