New Report Preview

According to American Metal Market, Gerdau (GGB) has announced a surprise $15/ton price cut for all longs, likely responding to sidelined buyers who are waiting for scrap prices to settle. We believe that pricing leader Nucor (NUE) will likely follow with a similar move – down $10-20-ton – as it appears that shredded looks to be settling down $50-60/ton.

We believe that Nucor will raise the base price to offset most of the surcharge decline in order to minimize pricing volatility and to respond to somewhat healthier markets as long product imports likely dropped in May and early June.

Our full report provides further thoughts about domestic and global steel prices as well as the implication for steel equities.

For a free trial subscription, please contact us.