Spot market prices for US domestic hot rolled, cold rolled, and galvanized coil have continued to rise in the past seven days.
Hot rolled prices are now trending at $42-$43 cwt. ($926-$948/mt or $840-$860/nt), FOB mill, against an average of $40 cwt. ($882/mt or $800/nt), a week ago. CRC and HDG prices are also up week-over-week and are now being heard at $52-$53 cwt. ($1,146-$1,168/mt or $1,040-$1,060/nt), FOB mill.
Prices have continued to tick upward due to several factors, sources note, such as increased order placement, still-lengthening lead times (HRC lead times are now at 8-9 weeks, whereas CRC and HDG lead times are at 9-10 weeks. In contrast, in early September, HRC lead times were recorded at 4-5 weeks, while lead times for CRC and HDG coil were trending at 4-7 weeks and 5-7 weeks, respectively), and mills’ anticipation of higher settled scrap prices in November.
It’s also believed that prices are likely to climb even higher.
For example, earlier this week, SteelOrbis reported that Cleveland Cliffs had joined US Steel in their push for $45 cwt. ($992/mt or $900/nt) hot rolled coil. In a letter sent out to customers on Oct. 31, the steelmaker announced they would be raising base prices for all flat rolled steel products, including HRC, by a minimum of $5.00 cwt.
This announcement comes less than 2 weeks after both mills announced new minimum base pricing of $40 cwt. ($882/mt or $800/nt), FOB mill.
These increases are consistent with SteelOrbis’ prior prediction that mills would try to push HRC up to $50 cwt. ($1,102/mt or $1,000/nt), as soon as the UAW strike against Ford Motor Company (FMC), Stellantis, and General Motors (GM) reached an end.