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(AMM) Nucor follows Gerdau with $20/T cut on long products [UPDATE]

July 13, 2010 - 23:04 GMT Location: PITTSBURGH

KEYWORDS: Nucor , Gerdau Ameristeel , rebar , merchant bar , structurals

Nucor Corp. has followed Gerdau Ameristeel Corp.?s leading move by reducing its transaction prices on rebar, merchant bar and some structural products by $20 per ton ($1 per hundredweight), effective immediately, due to declining scrap prices.

The amount of the cut came as a relief to market players as there had been widespread speculation that Charlotte, N.C.-based Nucor would drop the price tag by as much as $40 a ton.

Gerdau Ameristeel lowered its price by $20 per ton a week ago (AMM, July 7) and the rebar and merchant bar markets went into a holding pattern, waiting for Nucor to make its move.

"We just stopped shipping as nobody wanted to deal until Nucor came out," said a Northeast rebar buyer.

"We thought Nucor would drop anywhere from $25 to $40 a ton. That was our consensus because we figured Nucor would never agree with Gerdau and want them to feel they have any leadership in...

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

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