US HRC spot market prices tick up after mills announce fifth price increase

Friday, 13 January 2017 19:21:24 (GMT+3)   |   San Diego
       

US flat rolled steel mills have announced a fifth price increase; this week, AK Steel, Nucor and NLMK USA told customers they would be raising US domestic hot rolled coil (HRC) spot market prices by $2.00 cwt. ($44/mt or $40/nt), effective immediately.
 
And while the above stated mills did not announce new, minimum pricing, ArcelorMittal USA told customers they were setting a new, minimum base price of $32 cwt. ($706/mt or $640/nt).
US HRC spot market pricing has exhibited signs of firming since the increases were announced.
 
Today, the most commonly heard spot price transaction range for US domestic HRC has risen by $1.00 cwt. ($22/mt or $20/nt) on the low end, and by $1.50 cwt. ($33/mt or $30/nt) on the top end, which brings today’s average transaction range to $30.00-$31.50 cwt. ($661-$694/mt or $600-$630/nt), ex-Midwest mill, although some SteelOrbis sources have said that buyers who are looking to book limited tonnages are likely paying $0.50 cwt. ($11/mt or $10/nt) more.
 
Lead times are currently trending between four and six weeks, a source said.
 
In terms of the year-on-year trend, in mid-January 2016, SteelOrbis reported the most commonly heard spot market price for US domestic HRC was trending at $19.00-$20.00 cwt. ($419-$441/mt or $380-$400/nt), ex-Midwest mill.
 
Price firming for US HRC is tied to a number of factors, including the decreased availability of imports due to trade case legislation, firmed US domestic scrap prices and optimism regarding soon-to-be-President Donald Trump.

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