Cleveland-Cliffs increased its hot-rolled (HR) coil price to $950 per short ton, effective immediately. This is a $40 increase from June's price of $910 and $25 less than May's price of $975.
This price increase positions Cleveland-Cliffs $50 per ton higher than Nucor, a competitor which recently increased its price to $900 per ton.
The increase follows President Trump doubling Section 232 tariffs on imported steel to 50%, raising import costs and impacting domestic pricing. While the tariff hike initially stimulated buying and influenced domestic mills' pricing strategies, demand hasn't significantly improved yet.
Initial predictions of price increases reaching $100 per ton or more ($1,000 total) have not been realized, likely due to ongoing discussions with Mexico and other trading partners about potentially lowering the tariffs.
Cleveland-Cliffs plans to increase prices for hot-rolled (HR) coil to $950 per short ton (st) with the opening of its July spot order book.
The Cleveland-based steelmaker said the price hike was effective immediately in a letter to customers dated Monday.
“Cleveland-Cliffs reserves the right to revise pricing through the July booking window,” the company added.
The $950/st July price represents a $40/st increase from Cliffs’ list price of $910/st for June spot tons. But it’s $25/st lower than the company’s $975/st list price in May, according to SMU’s price announcement calendar.
Cliffs’ increase means that the company is now seeking $50/st more for HR than Nucor, one of its EAF competitors. Charlotte, N.C,-based Nucor on Monday increased its list price for HR coil to $900/st, which is $50/st below Cliffs’ list price.
SMU’s price assessment for HR stood at $860/st on average on Monday. We will update our prices again on Tuesday evening.
The price hikes follow President Trump doubling of Section 232 tariffs on imported steel from 25% to 50%. That move, which went into effect on June 4, raised the price for imports. And imports typically provide the floor for domestic pricing.
The tariff hike also stimulated some buying and resulted in slightly longer lead times at domestic mills. It also caused service centers to stop cutting prices as aggressively as they had been. But demand to date has not notably improved in response to the higher prices and higher tariff level.
There had been chatter after Trump first announced his intention to raise Section 232 tariffs to 50% that US mills might announce price increases of as much as $100/st and that HR prices could hit $1,000/st. But such talk died out after news broke that the US was in talks with Mexico, and potentially other trading partners, about lowering the 50% rate.
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