Will last week’s US HRC price increase gain acceptance?

Last week, US domestic flats mills were sending out price increase announcements about as fast as they could get them written up; this week, however, spot market prices have remained unchanged.  The most commonly reported US domestic hot rolled coil (HRC) spot range continues to trend at approximately $23.00-$24.00 cwt. ($485-$529/mt or $460-$480/nt), ex-Midwest mill. 

SteelOrbis sources say while they’re happy mills blasted the announcements to their customers, “no one wants to be the first one to pay it.”  And while it may still take several weeks for the uptick to gain traction, many think it’s bound to happen by the end of May, if not early June.  “If nothing else the letter may have set a hard-line bottom which has caused the pricing slide to stop,” said another source, who further notes that previously-seen lowball offers “seem to be off the table.”