Atlas Tube and NLMK USA Raise Steel Prices: An In-Depth Analysis of Demand Recovery and Market Impact

Washington D.C., USA – October 28, 2025 – The U.S. steel market is witnessing a notable shift as two major producers, NLMK USA and Atlas Tube, announce price increases for their products. This move comes amidst a robust recovery in steel demand, signaling a new phase after a period of relative price stability and even declines. The decision to raise prices not only reflects market improvement but is also influenced by input costs and trade policies.

Details of the Price Increases

NLMK USA, a leading sheet steel producer, has announced price increases for its hot-rolled (HR) and cold-rolled (CR) coil products by at least $50 per short ton (st). Notably, prices for coated steel will see an even larger increase of $100 per short ton. These adjustments are effective immediately, marking a significant turn in the company's pricing strategy.

Following suit, Atlas Tube, a division of Zekelman Industries and North America's largest producer of mechanical tubing, hollow structural sections (HSS), and piling products, also announced a price hike. Atlas Tube's products will increase by at least $50 per short ton. This price increase is effective immediately for all new orders and applies to unconfirmed quotes and contracts. However, orders already on the books are price-protected for shipment through November 21.

Other producers are also making similar moves. Nucor, one of the largest steel producers in the U.S., recently raised its spot price for hot-rolled coil by $10 per ton, after keeping prices steady since late August.

Analysis of Driving Factors

The recovery in demand is the primary catalyst behind these price increases. After a period where the market was dominated by concerns over excess supply and volatile costs, construction and industrial activities are showing signs of revitalization. This creates a favorable environment for steel producers to adjust their pricing.

Furthermore, prior price announcements by sheet producers have played a crucial role. Sheet steel is a key input material for welded tubular products like HSS and mechanical tubing. Therefore, as sheet steel prices rise, the production costs for tube manufacturers like Atlas Tube also increase, compelling them to adjust their selling prices to maintain profit margins. Specifically, hot-rolled coil prices reached $805 per short ton as of October 21, 2025, a $20 per ton increase from the previous month.

In addition, trade policy is an undeniable factor. The U.S. government confirmed an increase in tariffs on steel and aluminum imports to 25% in early 2025. These tariffs raise costs for manufacturers using imported materials, thereby adding further upward pressure on domestically produced steel prices.

Broader Global Steel Market Context and Outlook

The global steel market is navigating a complex period. While demand in some regions, such as the U.S., is recovering, geopolitical factors, energy volatility, and environmental policies continue to influence supply and production costs.

For investors, closely monitoring these price movements is crucial. They could signal a more sustained upward trend in the steel industry, impacting company profitability and stock values. Managers need to re-evaluate procurement strategies and supply chain management to cope with rising raw material costs. Meanwhile, technical experts should assess the impact of increased steel prices on project costs and explore opportunities for alternative materials or design optimization to mitigate expenses.

While this article focuses on steel, price movements in one basic metal industry can often be indicative of broader trends in the materials market. To understand more about how other metal products are priced, you can refer to Pricing of aluminum coils/sheets for a general overview of factors influencing prices in the industry.

In conclusion, the price increases by NLMK USA and Atlas Tube are clear evidence of recovering steel demand in the U.S., bolstered by input cost factors and tariff policies. This is a positive signal for the steel industry but also presents new challenges for stakeholders in managing costs and business strategies.

References:

• gmk.center
• steelmarketupdate.com
• atlasmfg.com
• gordian.com
• steel.com