The flat rolled market has remained very strong since our last report two weeks ago, with June price increases still expected for both domestic and import offers.
Demand is still robust, and supplies, especially of cold rolled coils, are still limited. Most market watchers are now convinced that domestic flat rolled pricing will remain strong until September. Mittal's downed blast furnace has further tightened the market, as its one month absence from the market will reduce the company's output by approximately 300'000 nt.
For now, domestic offers for hot rolled coils still range from $29.50 cwt. to $30.50 cwt. ($650 /mt to $672 /mt or $590 /nt to $610 /nt) FOB mill. Cold rolled offers range from $35.00 cwt. to $36.00 cwt. ($772 /mt to $794 /mt or $700 /nt to $720 /nt) FOB mill.
As we mentioned in our last report, AK Steel will raise flat rolled prices by $50 /nt on May 15, though it remains to be seen whether or not the market will accept the entire increase.
The pricing trend for flat rolled imports is still up as well, and prices will most likely rise after domestic prices do. This week, hot rolled coil imports still range from $28.50 cwt. to $29.50 cwt. ($628 /mt to $650 /mt or $570 /nt to $590 nt) FOB, loaded truck, in US Gulf ports. Most cold rolled offers range from $33.00 cwt. to $34.00 cwt. ($728 /mt to $750 /mt or $660 /nt to $680) FOB, loaded truck, in US Gulf ports. However, there are some cold rolled import offers that are equal to or even higher-priced than domestic cold rolled offers.
License data from the US government import monitor shows that in the month of April 2006, the top five countries from which the US imported hot rolled sheet were:
Russia, at 60'218 mt;
Korea, at 54'880 mt;
Canada, at 43'378 mt;
Turkey, at 42'106 mt; and
Egypt, at 37'126 mt.
The countries from which the US imported most cold rolled sheet in April 2006 were:
China, at 85'968 mt;
Taiwan, at 61'558 mt;
Russia, at 31'436 mt;
Canada, at 22'614 mt; and
Brazil, at 20'350 mt.