Earlier today, Steel Guru Michelle Applebaum, provided more detail on the upward turn in steel prices.

“According to steel buyers we speak with, Nucor has followed Gerdau’s price increase for beams, where pricing had dropped $80/ton 2 weeks ago in a sudden move led by Steel Dynamics. Nucor has told customers via letters that beam base prices will rise $15/ton and the beam surcharge will rise $15/ton.”

She adds that this news should help not only Nucor, but also Steel Dynamics, Commercial Metals and Reliance Steel and Aluminum. Nucor and Reliance are up more than 1%, Commercial Metals is little changed and Steel Dynamics is down 1%.

AK Steel is up 3%, U.S. Steel is up a bit less than 1% and Gerdau is down 1.9%.

Applebaum adds:

“We believe that these price increases will hold in the market, as for the past 6 weeks globally we are seeing a great deal of strength in long products, particularly coming from the Middle East where we are seeing ebullient demand on the calmed political environment.”

WSJ 6/10/11

By Dave Kansas