Last week, Nucor and US Steel announced they would be raising prices on US domestic HRC by a minimum of $2.00 cwt. ($44/mt or $40/nt) effective with all new orders; AMUSA also announced a price increase, and set their domestic HRC minimum base pricing at $31 cwt. ($683/mt or $620/nt), ex-mill.
Sources said that increase announcement was expected, especially because it had been projected that US scrap prices would rise during the March buy cycle. However, HMS, P&S and shredded scrap prices have settled sideways throughout the US this month. Busheling was the only grade that firmed during the March buy cycle, although prices are only up by $10/gt ($10/mt) from February settled prices.
As such, it’s unclear whether last week’s increase will have any real sticking power, and whether any current upticks are sustainable in the absence of higher input costs.
In terms of current prices, sources say the bulk of US HRC spot market transactions are still taking place in the range of $28-$29 cwt. ($617-$639/mt or $560-$580/nt) ex-mill, although some have said the range may have widened slightly on the top end, to $28-$30 cwt. ($617-$661/mt or $560-$600/nt), ex-mill.