Global Fastener News

Steel Price Increases Sticking At US$10-20/Ton

John Wolz

Steel industry observers didn�t expect recent steel price increases to last, but CIBC World Markets analyst Anna Sorbo told Dow Jones her industry contacts are saying that, as of April 1, the price of hot-rolled steel – the industry benchmark – should rise by US$10-20 a metric ton.\
“They better stick, or else the whole industry will go bankrupt,” Sorbo said.
Most U.S. steelmakers raised hot-rolled prices on March 1 by US$40 a ton to about $220, except heavyweight Nucor Corp., whose increase was only half that amount.
Since orders are booked more than a month in advance, the price increase won’t appear in the books until April, Sorbo said.
She noted Nucor’s increase was more realistic.
Sorbo noted that eight U.S. steel companies to file for Chapter 11
bankruptcy protection last year
Steel companies have blamed imports for the industry’s plight, but trade cases filed against alleged steel dumpers are changing that.
Speculative brokers now realize that they may have to start paying retroactive duties.