US domestic flat rolled spot prices stable despite increase attempt

AK Steel announced this week it will increase its flat-rolled spot prices by at least $2.50 cwt. ($55/mt or $50/nt), but sources doubt buyers will accept it. Given the slow-demand quarter, sources say this is likely an attempt to strengthen the market, which would potentially give mills better footing as they negotiate their annual contracts. However, such efforts will not likely do much to change the overall market, though many are holding their breath to see if other major mills--namely Nucor--follow suit and also hike prices, as that could put more weight behind AK Steel’s efforts. For now, the US domestic flats market is stagnant with spots holding steady since last week. Hot rolled coil (HRC) is still in the general range of $31.50-$32.50 cwt. ($705-$728 /mt or $640-$660/nt) ex-Midwest mill and cold rolled coil (CRC) spots at about $36.50-$37.50 cwt. ($805-$827/mt or $730-$750/nt) ex-Midwest mill. 

Sources tell SteelOrbis that many buyers are positioning themselves to place a lot of tonnage in 2014, and some are saying they predict overall demand to increase by 10 to 13 percent next year. However, buyers will not necessarily stick with domestics to satisfy demand, and  attractive offers on Chinese and Indian CRC, which are holding steady since last week  in the approximate range of $33.00-$34.00 cwt. ($728-$772/mt or $660-$620/nt), could garner substantial interest for New Year deliveries.