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(AMM) Nucor set to boost rebar $75/T in April

March 09, 2010 - 21:12 GMT Location: CHICAGO

KEYWORDS: Nucor , rebar , merchant bar , structural steel

Mill published rebar prices are poised to rise $75 per ton on April 1, based on a late Tuesday announcement by Nucor Corp. that it would raise its raw material surcharge by $2.50 per hundredweight ($50 per ton) on rebar, merchant products and structural steels, as well as its base price on rebar by $1.25 per cwt ($25 per ton).

This follows increases on rebar of $65 and $60 per ton in January and February, respectively. Prices have moved up about $5 per ton since Feb. 15. "This $75 brings us up $200 (per ton) in the first quarter," a New England fabricator said on Tuesday.

The 2010 increases are all supply-side cost-driven moves, buyers said, noting that demand remains weak throughout most of the United States while some parts of Canada are seeing better conditions in terms of bid and order activity, and project backlogs.

Some fabricators and distributors said they will have a hard time pushing any further increases through to their customers. "They think we are making these prices up," the New England fabricator said.

"I am shocked at this one; it is hard for me to wrap my hands around," he said. "But the mills want to get profitable again. Stockholders want them to make money....

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

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