Firming US scrap prices spill over to HRC

Price firming within the US domestic scrap market has boded well for flats mills, who are becoming increasingly strict in holding the line on their late March price increase. Today, a growing number of buyers are starting to pay higher prices, according to SteelOrbis sources, with the best deals only available for those interested in booking significant tons.  Domestic scrap prices in the Northeast Ohio are up as much as $25/lt from levels seen last month, with prices in the Ohio Valley settling up $20/lt and prices in the south settling up about $10/lt.  Lead times for HRC, previously seen at four weeks, have started to tick up toward six, which had many speculating an additional price increase announcement was just around the corner.  And as of Friday, that suspicion came to into play when Nucor Sheet Mill and Severstall International announced an additional $1.25 cwt. ($28/mt or $25/nt) price increase for HRC, CRC and Galvanized products effective immediately.  Many, however, think the secondary increase is less about getting the new higher price and more about trying to get the late March increase to become fully absorbed.

Meanwhile, although import prices from Russia and Mexico have continued their sideways trend, traders say that newly booked Russian coil prices are coming in at least $2.00 cwt. ($44/mt or $40/nt) higher.