Late last week, AK Steel announced they would be raising prices on all US flat rolled steel products, including US HRC, by $1.50 cwt. ($33/mt or $30/nt) effective with all new orders. However, the announcement, which was not echoed by other US flat rolled steelmakers, has failed to push the market higher.
Current pricing remains stable week-over-week, at $30.50-$31.50 cwt. ($672-$694/mt or $610-$630/nt), ex-mill, although deals slightly below this range continue to be available to volume buyers. However, year-over-year pricing is down. In mid-September 2016, SteelOrbis reported that US HRC spot market prices were trending between $36-$38 cwt. ($794-$838/mt or $720-$760/nt), ex-mill.
Sources note that current lead times spanning between 3 to 6 weeks, healthy inventory levels, and sideways scrap pricing in the Midwest this month fail to support higher prices.
Looking offshore, import HRC spot market prices in the US domestic market from Egypt and Serbia have increased by $3.00 cwt. ($66/mt or $60/nt) since our last report a week ago and are now being heard in the range of $31-$32 cwt. ($683-$705/mt or $620-$640/nt), DDP loaded truck in US Gulf coast ports, but trader sources note that the pricing is unattractive to buyers as there is not much difference in offshore offers versus ex-mill offers in the US.