Late last week, ArcelorMittal began verbally informing customers of a $1.00 cwt. ($22/mt or $20/nt) price hike; and by early Monday, at least one other mill was slated to follow the increase. Industry insiders tell SteelOrbis that the increase is likely another attempt to push flat rolled spot prices higher, following an unsuccessful round of price increases in mid-March. However, US domestic hot dipped galvanized (HDG) and Galvalume base spot prices are still unchanged in the range of $37.00-$39.00 cwt. ($816-$860/mt or $740-$780/nt) ex-Midwest mill. The latest $1.00 cwt. increase would bring asking prices officially to around $41.50 cwt. ($915/mt or $830/nt) ex-mill, depending on the mill, but it is not yet certain whether other flats mills will follow the increase.
Lead times are shrinking at some US mills, and with busheling scrap prices expected to go sideways this month after falling in March, there likely won't be enough support for the increases to be absorbed. Meanwhile, on the US West Coast, a few smaller customers have been forced to pay at least a portion of a $1.50 cwt. ($33/mt or $30/nt) increase announced a couple weeks ago , and HDG base spot prices are approximately $43.00-$44.00 cwt. ($948-$970/mt or $860-$880/nt) ex- West Coast mill. However, with the US end-use market mostly rooted in construction--with little manufacturing activity taking place--many are skeptical that current prices are sustainable.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $37.00-$39.00 | $816-$860 | $740-$780 | neutral |
| 0.012"x40.875" G30 | ||||
| ex-Midwest mill | $48.00-$50.00 | $1,058-$1,102 | $960-$1,000 | neutral |
| 0.019"x48" G90 | ||||
| ex-Midwest mill | $48.00-$50.00 | $1,058-$1,102 | $960-$1,000 | neutral |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $37.00-$39.00 | $816-$860 | $740-$780 | neutral |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $48.00-$50.00 | $1,058-$1,102 | $960-$1,000 | netural |