US-based steel company Cleveland-Cliffs announced that it has increased its hot rolled steel (HRC) prices to $800/tonne. The company's new pricing represented a $50 increase from the previous level of $750, in line with improved market conditions and increased demand.
Cleveland-Cliffs announced that it would close its order book in January and accept only contractual obligations. The order book for February will be re-opened next week, the company said, citing increased order volumes and favorable market dynamics as the basis for the price increase. In the company's information letter to its customers, it was stated that this price increase more accurately reflects the real market value of hot rolled steel.
Company officials emphasized that the price adjustment is a strategy to meet growing demand, especially in sectors such as automotive, construction and energy.
Cleveland-Cliffs had previously opened hot-rolled coil orders for January at a price of $750, but said prices could be adjusted depending on market conditions. The company seems to be expecting a strong market turnaround and is pursuing a flexible strategy accordingly.
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