Integrated steelmaker Cleveland-Cliffs has increased prices for its flat-rolled products by $60/short ton (st), in a bid to stem a trend of recent declines in prices.
The announcement is the first since late August and applies to hot rolled coil (HRC), cold rolled coil (CRC), and hot dipped galvanized (HDG) coil products.
In late August, Cleveland-Cliffs, along with competitor NLMK USA, announced price increases of $75/st. Those announcements came after US steelmaker Nucor increased prices by $50/st in early August.
For most of August, the Argus US HRC Midwest ex-works assessment was mostly flat before declining on 30 August by $35/st to $780/st, bucking the price increases, which are generally targets set by steelmakers that are not always achieved. Since then Midwest HRC prices have fallen by 20pc to $628/st on 22 November.
Market participants had anticipated a price increase would be announced either before the US Thanksgiving holiday or by Christmas. While few see the announcement leading to significantly higher prices, they believe US steelmakers will use them to try to stop prices from declining more and to put a floor in the market.
Multiple steelmakers and service centers have reported prices are approaching steel mills' breakeven points, indicating that steelmakers would try to set a price floor.
