Steel Market Update

Led By Nucor, Steel Prices Trending Higher

Nucor has been anything but a leader in this round of increases. AK Steel was the first to announce for January and Severstal NA was the first to bring up February prices.

AK Steel was also the first to revise coating extras on galvanized steel (used in automobiles, appliances and construction) and U.S. Steel followed with new extras on galvanized and Galvalume (used for metal buildings and roofs).

Nucor has been a follower and has yet to increase their coating extras - the last mill east of the Rockies to hold on to their old extras.

According to the Steel Market Update indexes, the rock bottom of the range was $490 per short ton. Our index had hot rolled at $530 last week which is an increase of 8%.

Coated steels (Galvanized and Galvalume) made the largest price move (except at Nucor) increasing from a low point on our range of $649 to last week's average of $720 - a move of 10%.

The comments made regarding prices having increased by 30% from the lows achieved in November is a slight exaggeration.

AK Steel: 10 Structural Changes That Should Trump the Business Cycle

Steel stocks are running scared as analysts discover not all mills were able to obtain the higher prices as analyst were led to believe. You can read about this subject and other steel related subjects on my newsletter - Steel Market Update - steelmarketupdate.com. I will have a new article on the subject in Monday's edition. You can register online for a free trial.