Stelco-McMaster Boosting Prices

The soaring price for scrap metal is forcing more steel companies throughout North America to impose charges on material. The steps are being done to counter ferrous scrap prices, which have climbed sharply over the past year.

With steel companies starting to find improved demand for their finished product, many steel companies have been expressing concern that much of their price increases are being eaten up by higher scrap prices they are having to pay.

Following announcements by a host of other large scrap ferrous consumers, Stelco-McMaster ltee announced that it also will be raising prices. The company said that because of unprecedented cost increases in raw materials and energy, a price increase of $26 per net ton on merchant bars as well as a raw materials surcharge of $22 per metric ton on deformed concrete reinforcing bars will be applied on all shipments beginning January 15.

Marcel Francoeur, president and CEO, said: "Costs of scrap mainly, but also energy, ferro alloys, labor and supplies are all going up. We have delayed as long as we possibly could before passing on this increase to our customers but we cannot remain the quality steel supplier we have always been without raising prices and putting in a scrap surcharge."

Stelco McMaster Ltee is a private, independent company. Shares of the company are owned by Stelco Inc. It operates a mini-mill in Contrecoeur, Quebec.

The company produces more than 600 000 tons of quality bars and billets for the automotive, construction, service centers and railway industries.

Stelco McMaster is also involved in scrap metal processing through through Fers et Metaux Recycles Ltee of Laprairie, Quebec and Cyclomet of Scoudouc, New Brunswick.