The most commonly heard spot price transaction range for US domestic hot rolled coil has remained mostly stable since our last report a week ago, at $30-$31 cwt. ($661-$683/mt or $600-$620/nt), ex-mill, but sources close to SteelOrbis say they’re now wondering if this week’s price increase announcement will start to gain traction.
On Wednesday, three US-based flat rolled steel mills announced they would be raising prices by $1.50 cwt. ($33/mt or $30/nt), effective with all new orders, which, considering that US domestic scrap prices are forecast to firm between $5-$10/gt during the December buy-cycle, may not be all that surprising.
Most, if not all market players agree that prices will be primed to firm after the first of January, due to a forecast dip in import arrivals. It’s also believed that mills will have a hard time pushing prices upward until lead times for US HRC extend into January.
“The price increase may not be accepted immediately, but the writing is on the wall,” a source said. “Prices will go up, it’s not a matter of if, it’s a matter of when.”
In terms of offshore pricing, import HRC spot market prices in the US domestic market from Egypt and Serbia continue to be heard at $30-$31 cwt. ($661-$683/mt or $600-$620/nt), DDP loaded truck in US Gulf coast ports, which reflects no change week-over-week.