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| Gerdau |
Major U.S. steel producers are aggressively adjusting market rates to reflect current industrial demand. Nucor-Yamato Steel and Gerdau Long Steel North America recently announced a $90 per short ton increase for C12 and C15 beams. This move follows a similar upward adjustment just two months ago. Consequently, these U.S. steel price hikes signal a clear strategy by manufacturers to maintain margins amidst tightening market conditions.
Strategic Price Adjustments Across Product Lines
The latest pricing structure for structural beams takes effect for all new orders received on or after May 26. These producers previously guaranteed old rates only for orders confirmed by May 22, provided they ship by June 12. Meanwhile, Nucor continues to bolster its flat-rolled segment by raising the spot price for hot-rolled coil (HRC). The new offer now stands at $1,095 per short ton, representing a $5 increase from the previous week. Therefore, these synchronized U.S. steel price hikes across both long and flat products reflect broader confidence among major domestic mills.
Market Implications and Future Outlook
The upward trend extends beyond beams and HRC to include reinforcing bar (rebar) products. Earlier this month, Nucor, Gerdau, and Optimus successfully implemented rebar price increases to align with market activity. Commercial Metals Company also adopted similar measures to optimize delivery terms and profitability. As a result, analysts observe that the current wave of U.S. steel price hikes remains supported by sustained demand from the construction and manufacturing sectors. Market participants should monitor these pricing trends closely as lead times remain stable at 3 to 5 weeks.
ScrapInsight Commentary
The successive price hikes by major U.S. steelmakers are seen as a strategic decision to secure solid domestic demand and margins. In particular, the all-round price hike, which encompasses Beam and HRC, suggests a solid fundamental of the U.S. steel market, and is expected to further strengthen the downward rigidity of prices in the market along with the strong price of scrap metal, a raw material, in the future.
