US domestic HRC producers push for price increase

In the past week, flats mills throughout the US have been sending out price increase announcements but the question of how much of the attempted $3.00 cwt. ($66/mt or $60/nt) boost--if any--will stick has yet to be answered. In fact, despite mills’ attempts at firming the market, spot prices for US domestic hot rolled coil have ticked down by about $1.00 cwt. ($22/mt or $20/nt) since our last report two weeks ago, with deals slightly below available on larger orders, according to sources. Many in the market are not surprising at the soft trend in spots prices, as it mirrors a similar downtrend in US domestic scrap prices this month. The general consensus in the flats market is that the increase announcements are merely a way to stop the proverbial bleeding and to put a bottom on HRC’s months-long downtrend. 

As for imports, offers from Mexico and Russia have held steady since our last report (see chart below), although buyers say that anyone who is looking to book significant tons can easily negotiate deals below the average transaction range.