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US steel price hike gains backing of some mills

September 01, 2011 - 05:18 GMT Location: New York

KEYWORDS: AK Steel , U.S. Steel , Nucor , ArcelorMittal , steel , steel distributors , NLMK , flat-rolled steel , steel prices

A number of major steel mills have thrown their weight behind a $40-per-ton ($2-per-hundredweight) flat-rolled price increase in hopes that the move will bump prices firmly over the $700-per-ton ($35-per-cwt) mark.

"Base prices will increase by $40 per ton for hot-rolled and cold-rolled carbon steel products and by $50 per ton for coated carbon steel products," AK Steel said.

Other major steelmakers also have followed suit, with Charlotte, N.C.-based Nucor Corp. said to have contacted customers Wednesday with news that base prices for hot-rolled steel would be raised to $740 per ton ($37 per cwt) and cold-rolled steel to $840 per ton ($42 per cwt), effective immediately for all new orders.

Meanwhile, U.S. Steel Corp., Pittsburgh, and ArcelorMittal USA, Chicago, were said to be nearing their own increases, having urged customers to place orders before midweek in order to beat the next rise, according to market sources.

"(My mill representative) told me all orders had to be in by today, so we’re expecting to see that increase from them today or tomorrow," a service center source told AMM...

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

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