New York (Platts)--17Feb2011/442 pm EST/2142 GMT
Severstal North America is now asking $900/st ex-works for steel hot-rolled coil and $1,000/st EXW for cold-rolled and galvanized, according to an internal memo obtained by Platts Thursday. The SNA increases are about $50-60/st higher than the Michigan-based steelmaker's previous offers, according to buyers, and effectively match the latest "street" pricing from Ohio-based AK Steel, Pennsylvania re-roller Duferco-Farrell, and two mills operating on the West Coast -- California Steel and USS-POSCO. "Current business conditions continue to be stronger than anticipated as demand in our major markets improves," noted Tom Marchak, vice president/commercial in the February 16-dated memo to the SNA sales force. "As a result of this demand, combined with the continued increase in the cost for input materials, Severstal North America will adjust base prices effective immediately on all new orders entered after 6pm 2/11/2011." Marchak then listed the company's new base pricing as: $45.00/cwt for hot-rolled, which equates to $900/st; cold-rolled at $50.00/cwt ($1,000/st); hot-dipped galvanized also at $50.00/cwt, as well as Galvalume product. Electrogalvanized steel was increased to $55.00/cwt ($1,100/st). The Severstal news did little to immediately alleviate some recent confusion in the US flat-rolled market. A few mills have adjusted their hot-rolled coil offers higher to nearly $900/st ex-works Midwest US for April shipments, but as of late Wednesday others were still offering HRC at $820-850/st ex-works for late-March delivery, according to buyers and traders active in the market. HINT OF NUCOR NEXT TO MOVE? Talk persisted early Thursday in the US market that Nucor -- widely considered the market leader -- was ready to make a price-hike move of its own. During the Reliance Steel and Aluminum earnings call this morning, a $30/st increase from Nucor was alluded to by the big service center. But as of midday Thursday, other buyers were unable to confirm any official increases from Nucor. A $30/st hike from Nucor would put its asking prices for HRC at about $870/st ex-works, according to customers -- somewhere between where prices are currently ($830/st EXW Indiana) and the loftier offers now from some others ($900/st EXW). --Joe Innace, joseph_innace@platts.comSimilar stories appear in Steel Markets Daily. See more information at http://bit.ly/SteelMarketsDaily