The most commonly reported spot price transaction range for US domestic hot rolled coil (HRC) may have held stable since early June, at approximately $31-$32 cwt. ($683-$705/mt or $620-$640/nt), ex-Midwest mill, but many question how much, if any, this week’s price increase announcements will impact the market.
ArcelorMittal USA (AMUSA) this week told customers they have opened their August order books and would be raising base prices by $1.00 cwt. ($22/mt or $20/nt), which is immediately applicable to all new business accepted by AMUSA for August production.
California Steel Industries (CSI) informed customers they have opened their September flat rolled order book, adding they too would be raising prices on US HRC by $1.00 cwt. ($22/mt or $20/nt), effective with all new orders.
NLMK USA announced they would be implementing a $1.50 cwt. ($33/mt or $30/nt) price increase on all new spot market orders. The increase they said, would be inclusive of their entire product line and was a “minimum guideline.”
Multiple sources close to SteelOrbis say they question how successful the price increase will be due to current—and still forecasted—declines in US domestic scrap prices. The summer months are also generally slow, with sources noting that activity between now and labor day is “mostly tepid” due to many within the industry taking time off to vacation with their families.
“This may be a pre-emptive strike against price softening,” one source adds. “The mills want to make sure that current price points stay level and this could just be them drawing a symbolic line in the sand.”