As reported in Platts 'heards in the market,' Monday, ArcelorMittal USA is raising prices of all flat-rolled steel products for the second time in ten days, according to an internal memo obtained by Platts and dated June 15.

 

All new spot-market orders, effective immediately, will carry the following base prices: $460/st ex-works for hot-rolled coil; $560/st ex-works for cold-rolled coil; and $580/st ex-works for hot-dipped galvanized, according to the memo addressed to commercial team members and signed by D.G.[Daniel] Mull, executive vice president sales and marketing.

 

Earlier this month, ArcelorMittal USA announced an increase in the base price of HRC to $410/st from $380/st ex-works, and prices of $490/st for both CRC and galvanized. The latest increases represent $50/st more for HRC, $70/st more for CRC, and $90/st more for galvanized.

 

"Since our price change on June 3, we have seen the following positive indicators in our business," the memo noted:  -- "Implementation of the June 3 prices on our non-contractual business. -- MSCI [Metals Service Center Institute] data indicates inventories have been reduced by approximately 350,000 tons in May, bringing total inventories to all-time low levels.-- An increase in orders from our end-user customers indicating that they have also fully depleted their inventory levels and some are planning increased production schedules during the third quarter."

 

The memo to the sales team also emphasized that all appropriate extras will apply.

 

"As previously stated, we must recoup the value for our products that has been lost over the last six to eight months," Mull noted, adding that incoming orders will be monitored "to match our production capability." He said, "Currently our books are closed for order acceptance while we review our future production status with Planning." –Platts