US Steelmakers Raise Prices Despite Weak Demand

Two of the largest steel producers in the United States, Gerdau and Nucor, are raising prices for long steel products and structural sections. The increases come despite continued weak demand across the US market for rebar and construction-related steel products.

According to industry publication Kallanish, Gerdau increased prices for merchant bar products by 40 dollars per short ton effective April 30. Certain products, including angles, channels, and flat sections, are receiving larger increases of 60 dollars per ton.

At the same time, Nucor’s Bar Mill Group announced nearly identical price adjustments. Commercial long products are also increasing by 40 dollars per ton, while some larger structural sections are rising by 60 dollars per ton.

Both companies said previously confirmed orders will remain protected under earlier pricing, provided shipments are completed within the specified delivery deadlines in mid-May.

Weak construction market pressures demand

The price increases come as the US long steel market has shown signs of slowing during the spring. By the end of March, US rebar prices had fallen by 1.6 per cent to approximately 1,014 dollars per ton.

For much of the year, the market has been characterised by cautious activity in the construction and infrastructure sectors. New projects have been launched at a slower pace, while many customers have mainly purchased smaller volumes to replenish inventories rather than placing larger orders.

At the same time, US steel producers continue trying to defend pricing levels through coordinated increases. The strategy has become increasingly common during periods of weaker demand and rising production costs.

Uncertain outlook for the US steel market

Both Gerdau and Nucor stressed that pricing may be revised again depending on market conditions.

Gerdau said it continues monitoring the market in order to maintain competitive balance, while Nucor warned that unconfirmed offers could be subject to revision or reassessment.

The US steel industry is also being affected by several broader uncertainties, including higher interest rates, weaker construction investment, and increasing import competition in certain product segments.

In recent years, the US steel market has experienced sharp price swings following the pandemic, the energy crisis, and disruptions in global supply chains. Several steelmakers are now attempting to stabilise margins after a period of lower volumes and weaker construction-sector activity.

Despite the latest increases, it remains uncertain whether the market will fully accept higher prices while overall demand continues to be described as limited.

Source: Kallanish.

Fact check

Long steel products include rebar, beams, structural sections, and merchant bar products used in construction, infrastructure, and industrial applications. One short ton equals approximately 907 kilograms. Over the past year, the US steel market has been affected by weaker construction activity and higher financing costs.