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More price hikes coming for American steel, analyst says

Published 01/25/2018, 10:10 AM
© Reuters.  More price hikes coming for American steel, analyst says
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  • The rally in U.S. steel prices is far from over as more increases are on the way from producers, Bloomberg analyst Andrew Cosgrove says, citing a report from Steel Market Update that California Steel and UPI announced a new round of flat rolled price increases last night.
  • Cosgrove also expects eastern mills to come out with new pricing soon, which should drive U.S. hot rolled coil prices firmly above $700/ton (currently at $695); he says both mini and integrated mills were quoting buyers $710-$730/ton last week and deals were heard concluded at $720/ton.
  • The strong pricing environment likely will continue at least into Q2 as flat-rolled lead times have extended in the past two weeks to levels not seen since Q2 2017, the analyst says.
  • Relevant tickers include X, AKS, CMC, NUE, STLD, SLX
  • Source: Bloomberg First Word
  • Now read: Steel Dynamics Augmenting The Steel Up-Cycle With Its Own Excellence


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