Late last week, US domestic flat rolled steel mills announced their second price increase in less than a month. The move, sources say, was both surprising and not surprising. Some believed that mills would try for a second price increase, but believed that would not come until January. Others say they were not surprised by the announcement, as US domestic scrap prices settled up during the December buy cycle.
At current, the most commonly heard spot price transaction range for US domestic hot rolled coil has firmed by $1.00 cwt. ($22/mt or $20/nt) since our last report a week ago; this is the second week in a row that US HRC prices have showed signs of firming.
As such, today’s average spot market price transaction range to $31-$33 cwt. ($683-$728/mt or $620-$660/nt), ex-mill.
Year-on-year pricing is up as well. In mid-December 2016, SteelOrbis reported that the US HRC spot price transaction range was trending at $29-$30 cwt. ($639-$661/mt or $580-$600/nt), ex-mill.
It is further believed that prices will maintain their uptrend through the first part of 2018; many market players expect a third price increase will be announced after scrap prices settle in January.