A third price increase from one US flats producer came as a surprise Monday, even as US domestic coated flat steel prices inch higher. Numerous market participants predicted the previous two price increases in the US domestic flat rolled market, however on Monday, AK Steel's $1.50 cwt. ($33/mt or $30/nt) increase announcement--the company's third price increase in recent weeks--left many stunned and confused, wondering if other mills would follow suit. While the first $2.00 cwt. ($44/mt or $40/nt) price increase was announced about a month ago, it hasn't fully been absorbed in the spot market, especially for larger buyers or buyers with more leverage.
However, with scrap prices surging as much as $80/lt in the Midwest during early August sales, mills have had more success implementing higher prices; nonetheless, lead times have been largely stagnant as buyers haven't been willing to stock up inventories in case the current uptrend is only temporary. Since last week, US domestic hot dipped galvanized (HDG) and Galvalume base spots have increased $1.00 cwt. ($22/mt or $20/nt) and are now between $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) ex-Midwest mill. Galvalume 0.019x41.5625 Gr80/AZ55 spot prices are still in the range of $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) ex-Midwest mill, but transactions are trending toward the top of that range, and coated flat steel spots overall are poised to keep firming for at least the next couple weeks.
Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
US domestic HDG base price | $36.00-$37.00 | $794-$816 | $720-$740 | ↑ $1.00 cwt. |
0.012"x40.875" G30 | ||||
ex-Midwest mill | $46.00-$47.00 | $1,014-$1,036 | $920-$940 | ↑ $1.00 cwt. on the low end |
0.019"x48" G90 | ||||
ex-Midwest mill | $46.00-$47.00 | $1,014-$1,036 | $920-$940 | ↑ $1.00 cwt. |
US domestic Galvalume base price | ||||
ex-Midwest mill | $36.00-$37.00 | $794-$816 | $720-$740 | ↑ $1.00 cwt. |
0.019x41.5625 Gr80/AZ55 | ||||
ex-Midwest mill | $46.00-$47.00 | $1,014-$1,036 | $920-$940 | neutral |