Scrap numbers said to be a key factor to watch
Nucor Scrap Surcharge (contracts) to Increase by $120/Ton
Nucor’s scrap surcharge will increase on June 1, 2008 by $120 per ton ($6.00/cwt) based on the latest published #1 Busheling scrap prices. This increase comes after an increase of $170 per ton for the month of May.
Number 1 Busheling has moved from $430/l.t. in March to $600/l.t. in April and is now being published at $720/l.t. for May. The May number determines the surcharge that Nucor will charge for the following month (June).
As I have mentioned on a number of occasions the scrap numbers are one of the key pricing factors that we need to watch.” said John Packard. “We can now anticipate that Nucor will announce their flat-rolled spot prices some time this week (I would anticipate early this week) and the increase could be in excess of the $70 per ton announced by AK Steel earlier this month.”
AK Steel’s base prices on HR for July are $56.25/cwt and I anticipate that Nucor’s number may exceed the AK Steel number.
Source: John Packard: mysteelagent.com