US domestic flats prices rapidly rising

Monday, 02 January 2012 14:14:05 (GMT+3)   |  
       

US domestic flat rolled spot prices have increased again in the last week, firming by about $1.00 cwt. ($22/mt or $20/nt) on the low end, after an approximately $1.00 cwt. increase the week prior. A scrap price surge in December and another expected for January have been the primary drivers of domestic mills' successful price push. Coupled with the recent partial idling of RG Steel's Sparrows Point mill in Maryland, currently expected to last until March, spot prices will all-but-surely continue to rise throughout at least January.

Even with Sparrows Point mostly out of commission, there is no shortage of flat-rolled steel in the domestic market; although if demand remains as steady as it has been in recent weeks, particularly because of the automotive market, steel supply in the oversaturated flats market will tighten, lending support for mill-announced increases--another price increase is already anticipated in January.

Another thing helping mills push for higher prices is a lack of import competition. While a decent amount of imports were booked earlier this month, import activity has been quiet the last couple weeks, and import offer prices to the US have remained stagnant. However, if US domestic mills continue to push spot prices higher and higher, imports may once again become a viable option for US buyers.

 

Cwt.

Metric Ton (mt)

Net ton (nt)

Change from last week

US domestic

HRC

$34.00-$35.00

$750-$772

$680-$700

↑$1.00 cwt. on low end

CRC

$39.00-$40.00

$860-$882

$780-$800

↑$1.00 cwt. on low end

China*

CRC

$39.00-$40.00

$860-$882

$780-$800

neutral

India*

CRC

$39.00-$40.00

$860-$882

$780-$800

neutral

Russia*

HRC

$31.00-$33.00

$683-$728

$620-$660

neutral

CRC

$36.00-$37.00

$794-$816

$720-$740

neutral

*DDP loaded truck in US Gulf ports


Similar articles

Stocks of main finished steel products in China down 0.6 percent in mid-March

25 Mar | Steel News

US flats source believe HRC prices are “at or near the bottom”

22 Mar | Flats and Slab

Romania’s sole flats mill cuts HRC prices, raises HDG and PPGI prices

22 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 12, 2024

21 Mar | Flats and Slab

US HRC prices still ticking downward, prices expected to bottom this month

15 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 11, 2024

14 Mar | Flats and Slab

Stocks of main finished steel products in China up 4.0 percent in early March

14 Mar | Steel News

Baosteel keeps local HRC prices stable for April

12 Mar | Flats and Slab

US flats mills take primes down $60-$70/gt, announce HRC price increase

08 Mar | Flats and Slab

Flat steel prices in local Taiwanese market - week 10, 2024

07 Mar | Flats and Slab