The most commonly reported spot price transaction range for US domestic hot rolled coil (HRC) has firmed by approximately $1.00 cwt. ($22/mt or $20/nt) since our last report a week ago, bringing the current average transaction range to $30-$31 cwt. ($661-$683/mt or $600-$620/nt), ex-Midwest mill.
This week’s increase comes on the heels of an approximate $3.50 cwt. increase that was seen one week prior. Current average US HRC spot market prices are trending $11.50-$12.00 cwt. ($254-$265/mt or $230-$240/nt) higher than they were on Jan. 1, 2016.
The big question, however, is whether other US domestic flats mills will follow the lead of USS-POSCO; yesterday the mill announced it would be raising base prices on US domestic hot rolled coil by $7.50 cwt. ($150/nt or $165/mt), effective immediately.
“The speculation is that mills will keep trying to push prices up for as long as they can because if people haven’t already booked tons offshore, the arrival time will be too close to the end of the year for them to avoid the year-end inventory tax,” one source said. “In the short term, at least, we think the mills will keep raising prices because, well, they can.”