Nucor’s leading sheet price hike of $40/short ton has gained support from its integrated rival US Steel, though the majority of the market is still waiting on the sidelines, Kallanish reports.
US Steel’s increase mirrors Nucor’s, though at least one source has suggested that both mills had been planning an increase for some time.
One buy-side source says he views the increase as a stop-gap against further erosion, which may mean limited support.
“I still think it’s only mean to stop prices from declining further,” he says. “That would mean others may remain silent.”
A source at one top-tier mill, however, reiterated that market conditions were strong enough for a general increase, and that more mills would likely follow.
Prior to Nucor’s increase, Kallanish put hot-rolled at $830-880/st with cold-rolled at $950-1,000/st. All prices are ex-works, domestic mill, and updated each Monday.