Nucor-Yamato Steel Co.’s decision to stand pat next month has driven another nail in the coffin of a planned price hike on wide-flange beams.

 

In what was said to be the least surprising news to come out of the steel industry this week, the Blytheville, Ark., producer said it won’t alter either its raw materials surcharge or its base price on beams, leaving its "transaction price for all products unchanged for October."

This keeps the published f.o.b. mill price for core beam sizes at $42 per hundredweight.

 

Consumer buying price for shredded automotive scrap was unchanged in the Chicago market, the basis for many mills’ surcharges, which for most buyers confirmed what they view as an overall stagnant market.

 

Gerdau Long Products North America LLC, Tampa, Fla., previously said it would boost beam tags by $20 per ton ($1 per cwt) with shipments on Sept. 19. But most buyers say they don’t see enough strength in the fourth quarter to support a hike and therefore view Nucor-Yamato’s policy as the most realistic.

 

"I think a sideways move is prudent," said one service center purchasing executive, echoing the view of other buyers that there’s little at this time to indicate that an improvement in demand is ahead.

 

Most speculation about a future price increase is based not on any expected rise in beam sales but rather on the chance for higher raw materials prices.

 

"Everyone is focused on scrap," said a market source.

 

A third major beam producer, the structural and rail division of Steel Dynamics Inc., Columbia City, Ind., hadn’t yet announced its October pricing.

 

While Nucor-Yamato’s announcement means that published beam prices will remain unchanged for the fourth month in a row, competition on project tonnage is expected to remain intense.

 

Nucor-Yamato’s decision on beams contrasts with its move earlier this week to go along with Gerdau’s $20-per-ton increase on reinforcing bar, although in October rather than on Sept. 19, as planned by Gerdau. But rebar inventories are reported to be low, while some large service center chains in particular continue to reduce their beam floor stocks.

 

Along the same lines, some distributors—probably reflecting this effort to keep inventories low—are telling traders they’re not interested in beams that would arrive before next year’s first quarter. That material would probably start to be quoted later this month.