March 2016

Steel Increase Note From Our VP of Sales and Marketing, Kyle Kubat

To Our Valued Customers,

During most of 2015, we have seen steel mill prices decrease due to an excess inventory in steel coil flooding into the U.S market from foreign sources.  U.S steel mills filed trade cases in June of 2015, against several countries due to the dumping of steel at below market prices by foreign mills. These trade cases started to have impact on price increases at the end of 2015. The impact has accelerated in 2016, with significantly increased steel prices, longer lead times for delivery and controlled order entry (new way to say allocation) by U.S. steel mills.  After losing billions of dollars over the last couple of years the domestic mills have taken a stance and are raising prices due to the leverage they hold with the anti-dumping suits that are being enforced and stopping the flow of foreign steel into the U.S.  On Wednesday, March 16th, the U.S. mills started the announcement of the fourth round of prices increases.  The significantly reduced amount of foreign steel that can be shipped into the U.S. has also followed this increased price momentum.

On April 18th, Phillips prices will be increasing up to 10% due to increases that are being pushed out by all steel mills.  It may also be necessary for Phillips to review pricing as we continue through 2016, due to the factors listed above.  Your Phillips Sales Representative Team will be visiting with you concerning these increases.  We will work with you in a business responsible manner in connection with these price adjustments.


Kyle Kubat

Vice President Sales and Marketing


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