Buyers of US domestic HRC react with a shrug at recent price increase

US domestic flats mills may have rolled out a $3.00 cwt. ($66/mt or $60/nt) “effective immediately” price increase, but for the most part, only those placing the smallest of orders are paying higher prices.  The announcement has, however, seemed to stop the proverbial bloodletting and has kept previously down-trending prices from enduring further erosion.  In terms of activity, demand is good, according to industry insiders, but not good enough to support higher prices.  Further, previous HRC bookings from Russian mills are starting to make their way into US ports, and the additional supply is putting added pressure on US domestic prices.  But there is a new wildcard that has come into play.  It is now believed that US domestic scrap prices, previously forecast at down $15-$20/lt for the month of April, will swing in the opposite direction, which could bode well for US flats mills should they try to draw a firm line in their pricing.  Although sources believe it’s unlikely the entire increase will be absorbed, prices could begin to slowly tick up as the month moves on.

Meanwhile, import offers from Russia and Mexico have continued to trend sideways, according to SteelOrbis sources, although those interested in booking larger orders may have some wiggle room when it comes to negotiating a better deal.