US flat rolled prices tick higher after mills announce price increases

Monday, 15 February 2010 17:19:21 (GMT+3)   |  
Spot market prices for US hot rolled coil (HRC) and cold rolled coil (CRC) have ticked up since last week as announcements of price increases from US Steel and Nucor begin to make their impact on the market.

Spot prices for HRC have increased about $0.50cwt. ($11/mt or $10/nt) since last week, with most offers now pricing between approximately $30.50 cwt. to $31.50cwt ($672/mt to $694/mt or $610/nt to $630/nt), ex-Midwest mills. Offers haven't yet risen to Nucor's new asking price of $32.00 cwt. ($705/mt or $640/nt), but deals below $30.00 cwt. ($661/mt or $600/nt) are said to be a thing of the past.  Domestic CRC prices have also gone up about $0.50cwt ($11/mt or $10/nt), with spot prices now ranging between $35.50cwt. and $36.50cwt. ($783/mt to $805/mt or $710/nt to $730/nt) ex-Midwest mills. This range is about $1.50 cwt. ($33/mt or $30/nt) shy of the price levels mills are now asking for.

While US flat rolled mills are still trying to push prices up, as is evidenced in the $15 to $40/nt price increases announced by several domestic mills this week and last (with the minimill hikes being on the low end of that range), many believe that the market momentum is slowing down and that mills are making a last ditch effort to keep prices from sliding.  That said, producers have already succeeded in pushing spot prices at least marginally higher than they were last week, which may indicate that the flat rolled market up-trend does have a little life left in it after all. In fact, some suspect that the mills may push for another increase in upcoming weeks.

On the import side, things remain quiet, though Mexican mills are also still trying to capitalize on the US market up-trend. Mexican offers for HRC have also ticked up about $0.50 cwt. ($11/mt or $10/nt) from last week, with $29 cwt. ($639/mt or $580/nt) offers now off table and new offers being priced between $30.00 cwt.and $31/cwt ($661/mt to $683/mt or $600/nt to $620/nt) delivered to US border states. Bookings out of Mexico remain quiet, however, as Mexican steelmakers seem to be focusing more on their domestic market. 

Meanwhile, there are few competitive CRC imports. China is still priced out of the market with most offers at $39.00cwt. ($860/mt or $780/nt) and higher. Momentum throughout the Southeast Asian flat rolled market has slowed as a whole, although China is not competitive on CRC as they are with certain light gauge HDG products.


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