Nucor, the largest steel producer in the US, announced a $60 per short ton increase in prices for thick-gauge rolled steel with the opening of its November order book. This was stated in a letter to customers published on September 29, according to SMU.

The increase applies to all new contracts that were not confirmed before the close of trading.

This move came as a surprise, as just two weeks ago Nucor said it would keep prices unchanged for the sixth consecutive month with the opening of its October order book. In addition, the increase follows a similar move by another major producer, SSAB Americas, which also raised prices by $60/t on September 26.

This is the first official change in Nucor’s base prices since March, when the company raised the cost of thick-gauge rolled products by $40/t. The letter states that the price increase applies to all categories of thick-gauge products.

According to market estimates, Nucor’s new theoretical price for standard thickness A36 base rolled products will be around $1,335/t. This creates a significant gap with current market quotes. According to SMU, as of September 23, the average price of thick plate was $960/t, which is $65 lower than a month earlier and almost $200 less than at the end of June.

As a reminder, in August, the global hot-rolled coil market developed unevenly. European quotations rose due to expectations of regulatory changes, while the US saw a decline due to weak demand and excess supply. The Chinese market remained relatively stable, with minimal price declines amid high inventories and sluggish exports.