The most commonly reported spot price transaction range for US domestic hot rolled coil (HRC) has firmed by approximately $1.00 cwt. ($22/mt or $20/nt) on the top end since our last report a week ago, bringing the current average transaction range to $30-$32 cwt. ($661-$705/mt or $600-$640/nt), ex-Midwest mill.
“There’s a lot of uncertainty when it comes to pricing and there are a lot of people who are afraid to book a lot of tons at these higher prices, especially since domestic scrap prices are likely to crack next month,” one source said.
“Everyone was all excited about the trade cases but people are starting to wonder if the domestic mills are trying to push things too far,” another source said. “Current pricing isn’t demand based and we’re all wondering if this is sustainable.”
California Steel Industries (CSI) this week announced they would be raising prices on US HRC by $6.50 cwt. ($143/mt or $130/nt.) The increase announcement comes less than a week after USS-POSCO announced they would be raising base prices on all new HRC orders by $7.50 cwt. ($165/mt or $150/nt) effective immediately.