Last week, US domestic flat rolled steel mills, including Nucor, NLMK USA, AK Steel and ArcelorMittal USA (AMUSA) announced a fourth flat rolled steel price increase.
AK Steel, Nucor and NLMK USA informed customers they would be raising prices for all flat rolled steel products, including US domestic hot rolled coil (HRC) by a minimum of $2.00 cwt. ($44/mt or $40/nt), ex-Midwest mill. AMUSA announced a new minimum base price for US HRC, of $30.00 cwt. ($661/mt or $600/nt).
Since the announcement, US HRC prices have firmed by $1.00 cwt. ($22/mt or $20/nt) on the bottom end, and by $2.00 cwt. ($44/mt or $40/nt) on the top end, which brings the current average spot market price transaction range to $28-$30 cwt. ($617-$661/mt or $560-$600/nt), ex-Midwest mill.
“Scrap is up so this isn’t surprising anyone,” one source said, adding that US HRC inventories are “not completely full” and that “customers still have to buy. Based on the current lack of availability of imports and what’s going on with scrap, [prices] could keep going up. No one would be surprised if mills rolled out a fifth price increase any day now. If they do, they’ll blame it on scrap.”