Nucor Corp., the largest US steel producer, has raised steel prices for the fifth time since the end of October 2019. The rest of the regional manufacturers did the same, including the Luxembourg-based ArcelorMittal and the Russian NLMK.
New orders for hot-rolled, cold-rolled and galvanized sheet will rise by at least $ 40 per tonne, taking effect immediately, Nucor said in a letter to customers on Wednesday. ArcelorMittal and NLMK raised prices for some products in the USA by the same amount, while NLMK informed customers that the increase was “due to an increase in delivery time and order placement.”
The Midwest Hot Rolled Futures Index in the Midwest rose 19% from a three-year low in November. The growth in demand for steel, among other things, was facilitated by a decrease in mortgage rates, which made the construction of new homes more affordable, Director General of Commercial Metals Co. said on Monday.
Analysts at Jefferies LLC, including Martin Englert and Alan Spence, said Nucor’s price increase is “a positive factor in the mood in the metals sector.”
Ferrous scrap prices are expected to rise higher this month than in December.
According to David Owen, an economist at IHS Markit, the long-term U.S.-China trade deal announced in December also makes long-term prospects for the steel industry brighter.
ArcelorMittal told customers on Wednesday that prices for all new orders for flat-rolled steel would rise by at least $ 40 per ton, with the price increase taking effect immediately.
NLMK said that base prices for all products will be immediately raised by at least $ 40 per tonne for all new spot orders.
The last time steel prices in the U.S. grew so fast after President Donald Trump introduced tariffs on imported steel in March 2018.
