US domestic flat rolled spot prices have increased again in the last week, firming by about $1.00 cwt. ($22/mt or $20/nt) on the low end, after an approximately $1.00 cwt. increase the week prior. A scrap price surge in December and another expected for January have been the primary drivers of domestic mills' successful price push. Coupled with the recent partial idling of RG Steel's Sparrows Point mill in Maryland, currently expected to last until March, spot prices will all-but-surely continue to rise throughout at least January.
Even with Sparrows Point mostly out of commission, there is no shortage of flat-rolled steel in the domestic market; although if demand remains as steady as it has been in recent weeks, particularly because of the automotive market, steel supply in the oversaturated flats market will tighten, lending support for mill-announced increases--another price increase is already anticipated in January.
Another thing helping mills push for higher prices is a lack of import competition. While a decent amount of imports were booked earlier this month, import activity has been quiet the last couple weeks, and import offer prices to the US have remained stagnant. However, if US domestic mills continue to push spot prices higher and higher, imports may once again become a viable option for US buyers.
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week |
US domestic | ||||
$34.00-$35.00 | $750-$772 | $680-$700 | ↑$1.00 cwt. on low end | |
$39.00-$40.00 | $860-$882 | $780-$800 | ↑$1.00 cwt. on low end | |
China* | ||||
$39.00-$40.00 | $860-$882 | $780-$800 | neutral | |
India* | ||||
$39.00-$40.00 | $860-$882 | $780-$800 | neutral | |
Russia* | ||||
$31.00-$33.00 | $683-$728 | $620-$660 | neutral | |
$36.00-$37.00 | $794-$816 | $720-$740 | neutral |
*DDP loaded truck in US Gulf ports